Kanye West‘s collaboration with adidas may have ended, but reports suggest that the footwear brand is planning to resell all remaining Yeezy sneakers in stock for charity.
After the separation between Adidas and Ye due to his anti-semitic remarks last October and controversial appearance on Alex Jones’ InfoWars, many wondered about the fate of the defunct brand’s remaining stock.
In a recent shareholder meeting on May 11, Bjørn Gulden, CEO of adidas, revealed that the company intends to donate a portion of the proceeds from Yeezy sales to charitable causes. Adidas has also entered into a collaboration and contractual agreement with West, which entitles him to receive a 15% commission on every sale.
Adidas ultimately decided not to destroy the millions of remaining unsold Yeezys due to sustainability concerns after the business deal was broken up.
“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 is quoted as saying.
Adidas lost $1.3 billion in the fourth quarter due to the loss of Yeezy revenue. Adidas’ decision to sell remaining items was based on finances rather than what Gulden termed a “reputational risk” for the company because additional $441 million in losses accumulated during the previous two quarters.
Prior to this, Ye had reached an agreement with adidas to sell nearly $500m worth of Yeezy inventory after months of back and forth.
In other related news, Kanye West has reportedly set up the new Yeezy headquarters next to an adidas store in Los Angeles, taking his trolling to a new level.
The new location is situated on Melrose Avenue between Laurel and N. Edinburgh, with just a hair salon standing between the brand and its former distributor, adidas, according to a post from Ye fan site Donda Times on Wednesday (May 3).
Yeezy’s last known office location is reportedly facing eviction after missing two months’ worth of rent totaling $63,254. Ye first leased the 15,000 square feet of office space in 2015 when Yeezy was known as West Brands Fashion.