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Adidas and Kanye West reportedly agreed to work together again just to sell the remaining YEEZY sneakers worth $500 million. The new deal is believed to be about the sale of select non-branded YEEZYs.
The renewed partnership between Adidas and Kanye West, who is now simply known as Ye, will not involve any production for new designs. The German sneaker and sportswear apparel firm just wants to get rid of its YEEZY stocks to reduce losses after it severed ties with the American rapper and music producer.
As per HypeBeast, rumors about the agreement have been circulating on social media and the web. This comes a few weeks after it was reported that Adidas is set to lose $1.3 billion due to unsold products and items from its previous partnership with Ye.
It was in October of last year when Adidas cancelled its contract with West. The company made the decision after the rapper posted a series of anti-semitic comments on social media. His controversial posts led to the termination of his contracts with major brands.
Aside from Adidas, Balenciaga and CAA talent agency parted ways with Ye. Retailers have pulled out branded products associated with the singer, and he lost his billionaire status because of contract cancellations.
XXL Mag reported that Adidas and Kanye West had collaborated for 10 years before their partnership ended last year. The artist was said to have tried looking for a new company to house his brand but has not been successful. In any case, the reported new deal between Ye and the sneaker maker has yet to be officially confirmed by both parties.
"The numbers speak for themselves. We are currently not performing the way we should," Adidas' chief executive officer, Bjørn Gulden, said about the blow to the company's profit margins after pulling out Yeezys from stores. "2023 will be a year of transition to set the base to again be a growing and profitable company."
He added, "We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again but we need some time."
Photo by: David Lezcano/Unsplash
