Kanye West: Adidas Sued By Investors Over Yeezy Partnership
adidas has been sued by investors over their Yeezy Partnership with Kanye West — which began in 2013.
According to CNBC TV 18, adidas was recently sued by investors in an Oregon courtroom after claims that the apparel company was allegedly made aware of the risks associated with continuing a partnership Ye prior to his anti-semitic outbursts last year.
In the lawsuit, investors in the company said that in a 2018 annual report, adidas reportedly disregarded the issues with their partnership with Kanye West by “generally alluding” to the risks “rather than stating that the company had actually considered ending the partnership as a result of West’s personal behavior.”
In February 2023, Kanye West reportedly reached an agreement with adidas that would see the company unload the remaining designs in the Yeezy collection.
According to reports from multiple outlets, the new contract would allow adidas to release and promote the existing product created under their previous deal with West. However, it does not make any provisions for a continuation of the collection.
Reports put the value of the remaining Yeezy x adidas products at approximately $500 million.
adidas has blamed Kanye directly for the financial loss that came as a result of the brand severing their deal, which so far is estimated to be around $1.3 billion in 2023.
According to a statement obtained by TMZ, the brand is in possession of numerous Yeezy designs it’s unable to sell. adidas had previously claimed in November it was going to repurpose said designs under a different name.
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The statement added that adidas could be drained of an additional $534million if it’s unable to repurpose the remaining Yeezy clothes, with CEO Bjørn Gulden adding that “the numbers speak for themselves.”
“We are currently not performing the way we should,” Gulden wrote, adding 2023 will serve as a transitional year for the company. There is reportedly a clause in Kanye’s contract with adidas that states the Chicago hitmaker would receive a reduced fee if Yeezy designs were sold without his affiliation, but adidas informed TMZ it doesn’t want to give Kanye another penny of its money.
adidas was forced to sever ties with Ye and his Yeezy clothing line after the controversial Chicago rapper went on multiple antisemitic tirades in 2022.
Ye has been criticized for months over his repeated antisemitic comments, and despite the pushback and financial loss he’s endured, has continued to double down on his love of bigoted German mass murderer Adolf Hitler.
Source: HipHopDX
