Adidas is making a big move to get rid of Kanye West's Yeezy items from its inventory while supporting good causes.
West lost its biggest deals when he got embroiled in anti-semitism and racism issues over the past months. He also lost his billionaire status after Adidas cut him off from its list of partners, but the brand had to prevent its business from losing over a billion in sales.
Adidas To Donate Yeezy Merch Sales to Anti-Racism Groups
On Friday, Adidas confirmed that it would start selling the $.1.3 billion Yeezy products after going through several talks with its stakeholders.
Adidas CEO Bjorn Gulden penned a statement to confirm the development, saying that it would release the remaining products after careful consideration.
"Selling and donating was the preferred option among all organizations and stakeholders we spoke to," Gulden said. "There is no place in sport or society for hate of any kind and we remain committed to fighting against it."
Proceeds after selling Yeezy products will reportedly be given to a number of anti-racism groups, including the Anti-Defamation League, which works on antisemitism and other forms of discrimination.
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Philonise & Keeta Floyd Institute for Social Change - the organization George Floyd's brother, social justice advocate Philonise Floyd - is also one of the recipients.
Adidas already removed Yeezy products from its market since it terminated its partnership with the "Jesus Is King" rapper in October 2022 following his controversial antisemitic comments online and during his interviews. It proclaimed that it condemns actions of antisemitism and other hate speech-related incidents.
Before the recent decision was finalized, Gulden revealed that Adidas had been trying to find solutions at the annual shareholders meeting in April. Instead of destroying the items, they decided to sell them to help the charities that can assist those who were harmed by West's statements.
Adidas Dismisses Financial Troubles Claims
Upon the announcement of the recent move, Gulden clarified that it would not affect Adidas 2023 sales - dismissing an analyst's previous prediction.
For what it's worth, an analyst previously said repurposing West clothing would cause problems for the brand. Retail expert and managing director at retail consultancy Strategic Resource Group, Burt Flickinger, noted that West's Yeezy products became hopeless amid his issues.
Thus, he suggested that the only options to save Adidas while helping others were to destroy the items or donate the unsold ones.
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