After cutting ties with Kanye West, also known as Ye, Adidas is scrambling to figure out what to do with the Yeezy products they have left.
The sportswear brand is unsure what to do with the products worth nearly half a billion, according to the Financial Times. The exact value is around $530 million.
In October, the company announced it was parting ways with the Yeezy founder after Ye had a series of public outbursts and, most importantly, went on Twitter antisemitic rants.
Adidas released a statement: “As publicly communicated on October 25, we had terminated the partnership with Ye immediately, ended production of Yeezy branded products, and stopped all payments to Ye and his companies,” Adidas finance chief Harm Ohlmeyer said that month.
USA Today reports that at the end of 2022, Yeezy made an estimated $1.8 billion in revenue for Adidas, which is 7% of its total.
As of now, third-party seller platforms like GOAT and StockX still sell Yeezy products.
Adidas is trying to figure out if they are stuck with the Yeezy products or if they can possibly sell them. However, having no contract or relationship with the founder will make it difficult.
The brand has set off a wave of sportswear companies cutting ties with high-profile people. Nike ended its contract with Kyrie Irving after the NBA player promoted an antisemitic film on Amazon.