- Adidas, grappling with a billion-dollar inventory of unsold Yeezy sneakers post Kanye West fallout, announces charitable solution.
- The German sports giant decides to sell the remaining Yeezy stock and donate all proceeds to charity.
- The company had earlier considered destroying the inventory, which would have cost them nearly $550 million.
Sit back, folks. Time to spill the tea on Adidas, which has been wrestling with a sneaker snafu for the better part of a year. Imagine being left holding a billion dollars' worth of unsold kicks, all because you had to cut ties with a certain controversial rapper named Kanye West, now known as Ye. Well, that was the predicament the German sports titan found itself in. But, guess what? They've figured out a solution.
On a typical Thursday that was anything but, Adidas CEO Bjørn Gulden gave the lowdown. The unsold stock of the Yeezy line? It's coming back, baby. And better yet, the cash from these sales isn't going back into the company's coffers. Instead, Adidas plans to donate all the proceeds to charity. Talk about turning sneakers into good deeds!
So, why was Adidas in this jam in the first place? Time for a rewind. The Adidas-Ye partnership hit the skids back in October. The reason? Ye's anti-semitic remarks on social media didn't sit well with the powers-that-be at Adidas. But the fallout from this split hasn't been a walk in the park for Adidas. Ye's line was no small change, accounting for a hefty 10% of Adidas' annual revenue.
The dilemma of what to do with the leftover Yeezy stock was a real head-scratcher. Options ranged from the drastic - imagine destroying all that footwear, to the tune of a whopping $550 million - to the less dramatic. And while Adidas was mulling over these choices, the cost of losing the Yeezy line was already hitting hard. Seven months post-Ye, Adidas was out $441 million in sales.
But now, Adidas seems to have found a way forward. Here's to hoping this new move not only clears the stock but also leaves a positive footprint on the world. After all, who knew a sneaker snafu could turn into a philanthropic venture?
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