Adidas, the German sportswear giant, has faced difficulties in repurposing unsold Yeezy merchandise following its decision to terminate its partnership with Kanye “Ye” West. In October of last year, Ye made antisemitic remarks causing the company to distance itself. Now Adidas is stuck with leftovers, according to NPR.
The company has been slow to release a plan on how it will deal with the piles of unsold Yeezy products, fueling frustrations among investors. The decision not to sell the existing merchandise is expected to reduce the company's full-year revenue by $1.28 billion and its operating profit by $533 million this year.
Adidas CEO Bjorn Gulden has confirmed that the company is working on different options to repurpose the already-made Yeezy products, but the decisions are yet to be made. In March, Gulden stated that he received hundreds of business proposals from people who would like to buy the inventory. However, he also mentioned that it was important to tread carefully given the tarnished reputation that the product is associated with.
The termination of the partnership with Ye has been a significant blow to Adidas. The Yeezy line was one of its most successful partnerships, and the termination has raised concerns about the company's future revenue. On top of that, the sportswear company was hit with a class action lawsuit which claims that they knew about Ye's problematic behavior for years. The inability to repurpose the already-made Yeezy products further adds to the company's financial woes.
Adidas has yet to release a detailed plan on how it intends to deal with the unsold Yeezy products. It's essential for them to come up with an effective strategy to mitigate the damage caused by the termination of the partnership with Kanye West.
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