Kanye West breakup could cost Adidas hundreds of millions!
Oregon, Portland - Adidas may be facing some tough losses this year, in yet more collateral damage from Kanye West's self-implosion.
If Adidas writes off the products created with Ye and halts the sale of his Yeezy-branded goods, the company's operating result could fall to minus $750 million, the company said on Thursday.
Adidas halted its collaboration with the rapper and designer West following a series of antisemitic outbursts.
His Yeezy line contributed almost $1.3 billion to sales and $535 million to an operating profit that is expected to drop to zero without this area of business.
If it halts the sale of Yeezy products, a write-down would reduce the result by a further €500 million, plus there would be a one-time cost of up to €200 million.
This is just the most painful in a long line of headaches that Kanye has caused Adidas. Aside from the toxic fallout from his meltdown – which included praising Nazis and even advocating for Hitler – the company had to launch an investigation into misconduct allegations made against the artist.
Yeezy employees complained that Kanye showed them "explicit" images of his then-wife Kim Kardashian, as well as using "fear and manipulation to assert dominance." Top Adidas execs were also accused of turning a blind eye to his repeated bad behavior.
Adidas has total control over all Yeezy designs that were released during the partnership with Ye. It had previously announced plans to continue selling the products under its own brand.
Cover photo: CHRISTOF STACHE, JULIEN DE ROSA / AFP