German sports retailer Adidas plans to keep selling stock from its "Yeezy" range launched with controversial rapper Kanye West even after splitting with him, and will donate the proceeds to charity, the company said. – Photo: AFP The merchandise has been in limbo since Adidas ended its partnership with the controversial rapper in October 2022. – Photos: Jean-Baptiste Lacroix and CHRISTOF STACHE/AFP
German sports retailer Adidas plans to keep selling stock from its "Yeezy" range launched with controversial rapper Kanye West even after splitting with him, and will donate the proceeds to charity, the company said.
A "significant amount" is to be donated to organizations that work against discrimination and hatred, including racism and anti-Semitism, Adidas said on Friday at its Bavarian headquarters in Herzogenaurach.
The sale of the first "Yeezy" products is to start in May. Whether there will be other "Yeezy" items on the market after that is as yet unclear.
Adidas' new Chief Executive Björn Gulden said at the company's annual general meeting on Thursday that Adidas was working hard to find a solution for the remaining products from the high-priced "Yeezy" range made in cooperation with the rapper.
"Burning them would not make sense," Gulden said, but suggested that selling the gear and donating the proceeds to those affected by the musician's controversial comments was conceivable.
The cancellation of the cooperation with the US rapper following his anti-Semitic statements cost Adidas up to €1.2 billion (RM5.9bil) in sales, as well as profits of up to €700mil (RM3.4bil).
However, the financial sacrifice was the right decision, according to Ines Straubinger, from the German Association for the Protection of Shareholders (DSW). The DSW, like other shareholder representatives, refused to ratify the actions of the board.
Shareholders had sharply criticized the company's management at the meeting, with the handling of the scandal surrounding the rapper in particular landing Adidas in hot water.
Gulden said he intends to get the floundering company back on track. However, he gave little hope for a quick recovery.
The expensive move away from West and his "Yeezy" products already caused the sporting goods manufacturer to make a loss in the first quarter. The bottom line was a loss of €24mil (RM188mil) in the first three months of 2023.
For the year as a whole, Adidas could close with a marginally positive result due to the "Yeezy" problems, as the company already forecasted in February.
Last autumn, media and podcast appearances and comments on social media showed West increasingly embracing anti-Semitic conspiracies and white supremacist rhetoric.
The volatile rapper has struggled with mental health issues for years.
A number of other brands and designers have also ended their relationship with West. — dpa
