Global Sporting brand Adidas has decried it’s looming gloomy financial predicament in 2023 following its severed business relationship with rap mogul and business magnet, Kanye West. It is so unfortunate that the athletic brand is set to lose a whopping sum of over one billion dollars within this year, precisely the sum of $1.3 billion as revealed by TMZ.
Sad as this may sound, but that’s the reality starring in the face of Adidas at the moment. This was made known by the company on Thursday, February 9, 2023, stating that the aforementioned financial misfortune is set to befall the company on the ground that it has been unable to sell off a large stock of both the Yeezy clothes and shoes since the company terminated their business relationship with Kanye West.
Meanwhile, the same source equally revealed that the company may lose yet another huge money, precisely around $538m if the company goes ahead with the idea of repurposing the huge stock of the Yeezy wears, according to the company’s CEO, Bjørn Gulden. He also stated that 2023 will definitely be a year of business transition for the company, especially as they continue to endure business life without Kanye West’s heavy global influence.
Recall that a lot of multinational companies, including Adidas immediately decided to cut business ties with West in the last quarter of 2022 following his controversial anti-Semitic comments and behavior. And like Adidas, it made it clear that it would go ahead in marketing the Kanye West designs without the music Mogul, but unfortunately things are not working out well as the company may have thought or wanted.
On the other hand, TMZ revealed that there exist a certain clause in Kanye’s contract with Adidas which could make Kanye West get some amount of royalties from the sales of his Yeezy designs if Adidas sells them with a rebrand, but unfortunately the company is not willing to indulge into that because there do not want Kanye to receive even a penny from them anymore.