Adidas has $500 million worth of Yeezy sneakers which they can’t sell
After severing ties with Kanye West, Adidas is reportedly stuck with Yeezy footwear valued around €500 million ($530 million).
The German sportswear giant is attempting to sell the products under its own name in an effort to reduce potential losses.
An estimated 1.7 billion euros ($1.8 billion) of Adidas’ total sales this year can be attributed to Yeezy.
After the rapper made antisemitic comments on Twitter in October, Adidas ended their connection with Yeezy. The company’s profits were projected to drop by $247 million, which Adidas said was a significant loss.
Balenciaga, Gap, and Footlocker were among the retailers that have stopped carrying Yeezy merchandise after hearing West’s remarks.
After allegations surfaced in Rolling Stone that West, also known as Ye, had behaved improperly towards Yeezy personnel, Adidas announced an investigation into him last month.
Based on interviews with over two dozen former Yeezy and Adidas employees, it claims that West showed staffers sexual footage of his ex-wife Kim Kardashian in a meeting.
A former Yeezy employee said in the Rolling Stone article that she overheard Ye urge a young black woman to sit on the floor during a lengthy meeting. The designer claims he told her she “didn’t deserve to sit at the table.”