Adidas stuck with £1billion of unsold Yeezy trainers following split from Kanye West

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FILE - A sign advertises Yeezy shoes made by Adidas at Kickclusive, a sneaker resale store, in Paramus, N.J., Tuesday, Oct. 25, 2022. Adidas saw operating earnings dwindle in the first three months of the year as the German sportswear company's breakup with the rapper formerly known as Kanye West and his popular Yeezy shoe brand cost it 400 million euros ($441 million) in lost sales. Profit was down to 60 million euros from 437 million euros in the same quarter a year ago, while profit margin shrank to a bare 1.1%. Net sales declined 1%, to 5.27 billion euros, and would have risen 9% with the Yeezy line, the company said Friday, May 5, 2023. (AP Photo/Seth Wenig, File)

ADIDAS has £1billion of unsold Yeezy trainers following its split from rapper Kanye West.

Bosses are stumped over what to do and the German giant faces a £611million annual loss if it cannot sell them.

Yeezy trainers launched in 2015 and brought in £1.3billion of sales in 2020

But Adidas terminated their contract with Kanye West late last year

Adidas parted ways with the rapper, now known as Ye, in October after he made anti-semitic comments on social media.

Selling the footwear would earn him royalties — which the company is not keen on.

Yesterday chief executive Bjorn Gulden refused to rule out destroying the trainer mountain but said adidas was “trying to avoid that”.

Donating them to charities could backfire and lead to a resale rush.

Mr Gulden added the company was “getting closer and closer to a decision”.

Yeezy trainers launched in 2015 and brought in £1.3billion of sales in 2020.

Adidas is facing a lawsuit from investors who claim it ignored potential problems over Ye’s “extreme behaviour”.

Did you miss our previous article…
https://hellofaread.com/money/huge-change-to-boots-loyalty-card-coming-this-month-and-shoppers-wont-be-happy/

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