Adidas’ Solution to Yeezy Problem: Selling the Stock and Giving Back to the Community
As we have seen in previous posts, Adidas and West had a successful collaboration for several years. They produced some of the most popular and sought-after sneakers in the market. However, things took a turn for the worse when West made some antisemitic remarks on social media, which sparked outrage and backlash from the public and the media. Adidas decided to cut ties with West and withdraw all Yeezy products from sale. That move left behind a huge pile of unsold merchandise worth €1.2 billion.
The Solution
So what is Adidas going to do with all these shoes? Well, according to the company’s CEO, Bjørn Gulden, Adidas plans not to destroy the unsold Yeezy stock. Instead, they would sell it off for charity. He said that burning the goods would not be a solution. The company was working on a plan for them to be sold. He also said that some of the proceeds would go to unnamed charities that represented people who “were hurt” by West’s comments. This way, Adidas hopes to mitigate some of the financial losses from the Yeezy debacle and also do some good for those affected by West’s actions.
However, there is a catch. If Adidas sells the Yeezy stock, West will still be entitled to his previously agreed commission of 15% of turnover, according to media reports. Adidas has declined to comment on this aspect. But it seems that West will still benefit from his former partnership with Adidas, even after damaging its reputation and causing it a huge loss. Some analysts have suggested that Adidas could relaunch the popular Yeezy products under a different brand name, but this option has not been confirmed by the company.
What will happen
In conclusion, Adidas is facing a difficult situation with its remaining Yeezy stock after breaking up with Kanye West. The company looks like it has decided to sell the stock and donate some money to charity. But this may not be enough to recover from the financial and reputational damage caused by West’s antisemitic remarks. It remains to be seen how Adidas will handle this challenge. And of course what impact it will have on its future performance and strategy.
Stay tuned to find out what will be adidas’ Solution to Yeezy problem.
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