Adidas is considering writing off the remaining 300 million euros ($320 million) worth of unsold Yeezy shoes following the termination of their partnership with rapper Ye, formerly known as Kanye West, in October 2022 due to antisemitic remarks.
The company has yet to decide whether to release the remaining inventory next year to generate donations for groups fighting antisemitism. The potential write-off of the unsold Yeezy inventory was included in Adidas’ outlook, with CEO Bjorn Gulden leading efforts to recover from the loss of the Yeezy business. There are ongoing evaluations, and the decision to write off the inventory has not been finalized.
Gulden said, “we of course hope we can do more drops next year and we can get more value out of it and donate the proceeds, but right now financially we haven’t made a decision and that’s why the outlook is the way it is.”
The shoe company sold 750 million euros worth of the shoes in two stages already this year through Adidas smartphone apps and on its website. They claim that part proceeds of profits went to charity organizations like the Jewish Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, an organization run by Philonise Floyd, the brother of George Floyd.
This after they cut ties with Ye in October 2022 after he made antisemitic remarks in an interview on Drink Champs.
In a conference call on Wednesday Gulden told reporters that, writing off the investors is a worst case scenario.
“Right now, that is financially the worst case and it is a possibility.” Adding, “Currently there is no decision.”
He said that over 600 employees in Israel were called up for military service and added “we, as a company, are starting donations programs, for the whole area, also for Gaza.”
