Why did Adidas drop Yeezy shoes? What did Kanye West say for Adidas to stop working with him?
In light of Kanye West’s controversial comments promoting White Lives Matter and anti-Semitism, Adidas decided to end their partnership with the musician. The Daily podcast breaks down Adidas’s sticky situation after the fallout, since they still had Yeezy inventory to sell.
Let’s look at the sequence of events leading up to and following the Adidas-Kanye West fallout.
The Decision to End the Adidas-Kanye Partnership
Why did Adidas drop the Yeezy brand? Kanye’s contentious public behavior, such as appearing with White Lives Matter apparel and making anti-Semitic statements, eventually led to Adidas ending the partnership, framed as a breach of contract in reaction to societal backlash.
This followed West boasting on a podcast about being able to act anti-Semitically without repercussions from Adidas—an assertion that coincided with increasing condemnation from societal leaders and influencers.
The termination resulted in Adidas bracing for its first financial downturn in many years, while Kanye saw a reduction in his net worth.
The Dilemma of Unsold Inventory
Adidas faced a new predicament with over a billion dollars worth of unsold Yeezy inventory. The new CEO’s decision to release this vast inventory for sale underscores the complex financial relationship continuing between Adidas and Kanye post-separation.
Although their business arrangement was terminated, the disposal of the remaining Yeezy stock indicates that financial intertwinement persists, with the sale potentially impacting future financial returns for both parties.
Context
Kanye West’s controversial behavior and public statements have had far-reaching consequences, including the termination of his partnership with sportswear giant Adidas. To understand the impact of this development, it is important to have background knowledge of West, Adidas, and their collaboration on the Yeezy brand. West is a well-known American rapper, producer, and fashion designer who has been involved in various controversies throughout his career. Adidas, on the other hand, is a multinational corporation known for designing and manufacturing sports shoes, clothing, and accessories. The partnership between West and Adidas for the Yeezy line has been highly successful and profitable.
However, societal backlash against West’s behavior led to the termination of their partnership. Prior to this decision by Adidas’s new CEO, West had faced condemnation for wearing White Lives Matter apparel and making anti-Semitic statements. These controversies raised questions about ethical considerations in brand collaborations as well as power dynamics between celebrities and brands. The termination also raises concerns about how controversies involving celebrities can affect brand partnerships and have financial implications for both parties.
