Adidas has announced that they will resume selling “Yeezy” sneakers after the fallout with Kanye “Ye” West. Ye had made controversial comments about certain religious groups and ethnicities on various platforms that Adidas, and other companies, found indefensible. Adidas will sell the rest of its existing inventory of Yeezy sneakers but they will not produce more. There is, however, just one catch. Adidas CEO Bjørn Gulden says that they will donate money to charity from the sales.
This announcement was made during a shareholders’ meeting. Adidas has lost over one billion dollars of market cap since its separation from Ye. Shareholders, obviously, would like to make up for this loss. Adidas originally floated the idea of simply destroying the remaining merchandise. That plan would be the least optimal for shareholders who have no way of making their cash back on valuable merchandise that gets destroyed.
It is not clear if Adidas will donate all of the proceeds from the sale of Yeezy shoes or if they will simply donate a percentage. And the percentage that they may donate is also not clear. Kanye West may be entitled to a percentage of the proceeds if Adidas is so contractually obligated. Although Adidas did not announce that they are back in business with Kanye West, this move makes the two entities linked by default.
SOURCES:
Yeezy stockpile: Adidas will sell Ye-designed shoes and donate proceeds : NPR
Adidas has finally decided what to do with its Yeezy stock
Adidas will sell Yeezy shoes after all | CNN Business
Adidas to sell Yeezy stock and donate portion of proceeds to charity
Adidas to Sell Yeezy Sneakers From Terminated Kanye West Collab, Donate Proceeds – WSJ
Adidas to sell Yeezy shoes and donate proceeds – BBC News
Yeezy shoes still stuck in limbo after Adidas split with Ye | AP News
