Overall, the Yeezy and Adidas fallout has been terrible for both sides. On one hand, Kanye West has lost his sneaker empire. He only has the right to one of his designs, and without Adidas, he has no means to produce his shoes on a grand scale. Moreover, he has completely ruined his reputation with the whole Nazi obsession. As for Adidas, well, they are looking at a massive operations loss that could be upwards of three-quarters of $1 billion. Additionally, it has been said that they have close to $1 billion in unsold Yeezy stock.
For months, Adidas has been contemplating what it should do with these sneakers and apparel. There have been rumors that they would sell the shoes and make back their losses. However, others have noted that they could end up destroying the stock. According to Complex, Adidas has opted to go with the former option. During a shareholder meeting today, Adidas CEO Bjørn Gulden made it abundantly clear that selling the stock is the best course of action.
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Kanye Will Get His Yeezy Royalty
“What we are trying to do now over time is sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye’s statements,” Gulden said. Essentially, Kanye will still get that 15 percent royalty he has always been entitled to. However, as Gulden said, most of the proceeds will go to charity. For Adidas, they simply do not want to waste money by burning a bunch of shoes. With their current financial situation in mind, they are looking to make back as much profit as possible.
For now, the details surrounding which colorways and models will be released is unknown. Moreover, we don’t even know when this fire sale will happen. That said, stay tuned to HNHH for all of the latest news and updates from around the sneaker world. Additionally, let us know which models you want to see get sold, in the comments below.
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