Adidas is now stuck with half a billion euros worth of unsold Yeezy sneakers after cutting ties with Kanye West.
The German sportswear giant is looking to sell the items under its own brand in order to limit potential losses.
Yeezy had accounted for 7% of Adidas sales this year, worth 1.7 billion euros ($1.8 billion). The partnership ended suddenly in October due to antisemitic comments by West, resulting in a hit of $247 million to Adidas’ profits.
Since Kanye West’s recent controversial comments, multiple companies have decided to cease selling Yeezy products. Balenciaga, Gap, and Footlocker are among the companies to drop Yeezy products.
The decision comes after Adidas began investigating West following a Rolling Stone report claiming West had acted inappropriately towards Yeezy staff.
According to interviews with over two dozen former Yeezy and Adidas staff, West was alleged to have shown explicit material of his ex-wife, Kim Kardashian, during a meeting.
A new report has revealed that a former Yeezy employee claims that Kanye West asked a young woman of color to sit on the floor during a meeting, telling her she did not “deserve to sit at the table.”
Adidas, the company that works in partnership with West, has yet to comment on the matter.