At the annual meeting held by Adidas on Thursday, May 11, 2023, CEO Bjorn Gulden has finally announced the fate of millions of unsold Kanye West’s Yeezy shoes. So far, the duo’s partnership has been ill-fated, with numerous problems arising over the past few years. The label discontinued their partnership with Kanye West and Yeezy in October 2022, which resulted in a significant loss of 1.2 billion euros ($1.3 billion) worth of unsold Yeezys.
Now, after much anticipation, Adidas’ CEO Bjorn Gulden has announced that the company will be selling a portion of these sneakers from their remaining inventory and donating the proceeds to international charitable organizations. Furthermore, it has been reported by multiple media outlets that for every shoe sold, the previously agreed upon royalties of 15% will be going to Ye (Kanye West).
The drama between both sides has gone on for a long time and is reportedly coming to a conclusion, with the recent announcement of the proceeds from the unsold Yeezy’s to be given to charity with a final cut of 15% of Kanye West still being processed. Ye’s fans expressed joy at the decision and called it an ultimate win for the American rapper.
Like @stormydagoat, many other fans shared a similar opinion over the decision regarding the unsold Yeezy sneakers.
Fans react to the news of the release of unsold Adidas Yeezy shoes as they celebrate a win for Kanye West
After a long battle faced by both Kanye West and Adidas, the fate of those unsold Yeezy sneakers was finally announced at the annual meeting held by the Three Stripes label.
The singer’s fans rejoiced to a great extent and made comments on how Ye’s partnership was prominent for the Adidas label. They further went on to state that after all of the drama involved, Kanye West came out as the winner.
Many Ye supporters commented that the Adidas label “folded” and lost the battle. One particular fan pointed out that the Three Stripes label needed Ye for their profits, while another stated that Kanye was the only reason that the label shined.
The fanbase of Kanye further displayed their loyalty by commenting:
“Nobody is buying those sneakers without Ye co-signing it.”
A few fans expressed how they had uninstalled the CONFIRMED adidas app and would now reinstall it after the news of unsold Yeezy shoes being released.
More about the previous drama between Kanye West and Adidas
The German sportswear label and its partnership with Ye has been in the headlines for the past year. The rapper and multi-hyphenate artist’s partnership with Adidas came to an end in late October 2022. The label stated that his antisemitic comments on social media and interviews were intolerable before finally deciding to pull the plug on the partnership.
The following month (November), the company received an anonymous letter from former employees who accused Ye of inappropriate behavior and harassment charges.
In April, Adidas was faced with a class action lawsuit, which alleged that the company was already aware of the risks of partnership years before Ye finally went public with his antisemitic comments.
More about the plans of Adidas reselling the unsold Yeezy stock
In the annual shareholders meeting held at Adidas, CEO Bjorn Gulden said that the company spoke to the groups and non-governmental organizations which were harmed or hurt due to Kanye West’s comments and actions before stating:
“Burning those shoes cannot be the solution”
He commented that they will proceed to sell a part of the remaining sneakers and inventory, and later donate the money from those sneakers to organizations harmed by Ye’s actions.
The exact detailed plan and number of shoes that will be sold at what time hasn’t been disclosed by Gulden or the Adidas label yet. The CEO assured the media that the company would continue to provide updates as they proceed with the plan.
In the meeting, Gulden and his team further announced that they would set an independent investigation for Ye’s alleged workplace misconduct:
“The allegations are not accurate, the [legal] proceeds are still in the early stages and we will defend ourselves against these accusations.”
Gulden refused to make any further comments regarding the issue. The largest shareholder for Adidas, Union Investment, questioned the issue and asked executives how long they were aware of the misconduct of Ye and why there were no previous actions before the month of October in 2022.
The company reps were clear to say they were unaware of the problematic workplace behavior that was showcased by Ye, prior to receiving the anonymous letter.
Will the Yeezy sneakers sell out like before with the same hype?
The move of Adidas comes after the label has lost hundreds of millions dollars, with an approximate loss of 600 million euros in the last three months of 2022. In the yearly budget which was announced last week, the Three Stripes label reported a substantial loss of $441 million at the start of 2023.
In the first quarter of 2023, the net sales of the label declined by 1%. If not for their severed partnership, it was anticipated to have risen by 9%, reports Guardian.
After nearly eight years, the company stock’s have taken a hit. However, after the announcement on Thursday, the shares have seen a 2.1% increase. Considering the impact on the general public, the Sporting Goods analyst Matt Powell commented:
“The shoes will sell out. Speculators will lap this product up, assuming they can flip it for a profit since these will be the last Yeezy products on the market.”
At the end of the meeting, key shareholders expressed that they were confident in Gulden and his turnaround plan. The plan will reassert the brand’s performance and credibility. Gulden commented that the partnership between Kanye West and Adidas label has been globally “sensational” over the last nine years.