If you thought the collaboration between Adidas and Kanye West was over, you were wrong. We're entering a new chapter: investors are suing the company over the breakup. Recall that the German brand broke up with the American musician and producer in October 2022, due to his problematic behavior, which included anti-Semitic comments on social networks.
Now, according to the BBC, a group of investors has filed a lawsuit against Adidas, claiming that since 2018 they knew that working with West was a risk. The lawsuit was filed in federal court in Oregon, U.S., and seeks to represent investors who purchased Adidas securities between May 3, 2018 and February 21 of this year. It not only targets the company, but also its former chairman and CEO, Kasper Rorsted.
A ticking time bomb called Kanye West
“Adidas ignored serious problems with the partnership with Ye,” which ultimately affected the partners, Bloomberg notes, as cited by Business of Fashion. It only made a general reference to the risks, rather than stating that the company had actually considered ending the partnership, due to West's personal behavior.
Kanye West, who had prestigiously pushed his Yeezy trainer model on both companies, has made a troubled exit from Nike and is now leaving Adidas. Will this be worth heavy fines for the German company?
What will Adidas do with the leftover Yeezy products?
After concluding the tie-up, the company with the three stripes continued to accept Yeezy productions from various suppliers. Adidas plans to sell them and donate the proceeds to charity. We're talking about a total of $1.3 billion, a huge blow to the German company.
Bjorn Gulden, CEO of Adidas, has hinted according to Bloomberg that the company may try to sell sneakers already produced, but also destroy them. What is certain is that “there is no other company with Yeezy in the market”. So the remaining Yeezy products will be highly coveted and their fate is undecided. Will you be able to get your hands on a pair of Yeezy's before they're gone?
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