Adidas to donate Yeezy sales proceeds to charity, Kanye still gets his cut
The German sportswear brand has announced its plan to sell its remaining stock of unsold Yeezy shoes and donate the proceeds to charity, according to the company's chief executive, Bjorn Gulden.
The decision comes after Adidas severed its ties with the controversial rapper and fashion designer, in late 2022 due to a series of antisemitic comments made by West. The Yeezy partnership with Ye was a highly successful collaboration for Adidas, accounting for nearly 10 percent of the company's annual revenue.
Kanye West opened a Yeezy office right next to an adidas store 👀🍿 pic.twitter.com/9cEhbqq8BX
— JustFreshKicks (@JustFreshKicks) May 5, 2023
In early February, Adidas expressed concerns about potential significant losses if it failed to sell the Yeezy inventory, raising questions about the fate of these controversial shoes. However, instead of resorting to destructive measures, Gulden emphasized that burning the shoes was not a viable solution. The company consulted with various nongovernmental organizations to find a more constructive approach.
Gulden revealed that Adidas aims to sell parts of the remaining stock over time and donate the proceeds to organizations that have been adversely affected by West's statements. The specific percentage of Yeezy sales earmarked for charitable donations has not been disclosed. This strategic move by Adidas reflects its long-overdue acknowledgment of the concerns raised by West's inflammatory remarks and its commitment to supporting those impacted by them.
Kanye West to Adidas when they came back. pic.twitter.com/sf2nc3WRFW
— Light Yagami (@aircoker) May 11, 2023
It is important to note that despite the termination of its partnership with Yeezy, West will continue to receive royalties from future sales. This indicates the enduring nature of their complex business arrangement, even in the wake of recent setbacks experienced by Adidas, such as substantial revenue losses and the reporting of its first annual loss in over thirty years.
Ye will be entitled to previously agreed commissions of 15% of Yeezy's turnover. pic.twitter.com/Az0x4IUm0q
— RH (@RihYe_) May 11, 2023
The decision to sell the unsold Yeezy shoes would bring an end to months of deliberation by Adidas, as the company weighed various options to address the situation. Among the possibilities considered were rebranding the distinctive sneakers, liquidating the inventory, or donating the shoes in some form. Another option was to destroy the shoes, a practice that has drawn criticism in recent years from retailers and designer brands due to environmental concerns.
Yeezy 2023 Models
— YE²⁴ yefanatics (@yefanatics) May 12, 2023
Possible models that will go on sale. pic.twitter.com/Of1peCW6Po
Last November, Adidas officials had expressed confidence in recouping the "vast majority" of losses by rebranding the shoes and selling them at a discounted price. However, Gulden later suggested that the company might not sell any of the products, which would have left Adidas with a considerable amount of unsold inventory estimated to be worth up to $500 million, according to analysts.
Adidas formally ended its relationship with Kanye West in late October, following a series of controversies. These included West's appearance at his Paris Fashion Week show wearing a "White Lives Matter" T-shirt, as well as the subsequent antisemitic comments made on Instagram and Twitter. West further reinforced these remarks during an unaired portion of an interview with former Fox News host Tucker Carlson.
By choosing to sell the unsold Yeezy shoes and donate the proceeds to charity, Adidas aims to mitigate the impact of Kanye West's statements and demonstrate its commitment to social responsibility. This decision represents an important step in reconciling the company's association with the controversial artist and addressing the concerns raised by his actions.