Ye should never have generated such a big chunk of earnings, and he didn’t – until the bottom fell out elsewhere in the company. By the time the partnership dissolved, the shoes accounted for 8 per cent of Adidas’ total revenue and 40 per cent of its profit, according to estimates from Morgan Stanley.Įven worse, the collapse exposed deep-rooted problems at Adidas that Yeezy’s success had long camouflaged. Then, in October, Ye capped off a series of unhinged outbursts with a torrent of antisemitic rants, leaving Adidas little choice but to end its multibillion-dollar arrangement with Yeezy and eliminating nearly half the company’s earnings in an instant. Over the past few years, one of Germany’s largest companies became dangerously reliant on a single person to meet its towering financial goals. The first pairs of the stranded footwear were being made available for purchase at the end of last month. Management finally decided it would begin selling the sneakers while giving a portion of the proceeds to charities. Burning them in the world’s largest hype-beast bonfire would be an environmental calamity, and chopping them into plastic bits to be reborn as turf is overly complicated and hardly satisfying. They contemplated donating the goods to victims in disaster-struck countries such as Turkey and Syria, but that could trigger illicit trafficking. ![]() They’ve considered unstitching the Yeezy logo off each sneaker, one by one, but that’s too laborious. APĪt Adidas headquarters, overlooking the medieval town of Herzogenaurach, Germany, senior executives have spent months mulling their Yeezy inventory dilemma. The end of Ye’s collaboration with Adidas has been costly for both parties. ![]() The total value of these sneakers: about $US1.3 billion ($2 billion). Their owner, Adidas, couldn’t decide what to do with all the tarnished merchandise created by the man who was, until recently, its most prominent business partner: Kanye West, who now goes by Ye. Sneakers – some looking like cozy turtleneck sweaters for your feet, others like they’ve grown teeth on their soles or solidified into pillowy clouds – that once would’ve sold out in limited-edition drops, often flipped for much more on StockX and Goat, now await their fate seven months after one of the biggest corporate meltdowns in history. Millions of pairs of unsold Yeezys are sitting in purgatory, stacked in warehouses from the US to China.
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