The erratic behavior of Kanye West has landed him in hot water with industry moguls. The rapper has tainted his image and hampered his brand’s image after his hate-spewing behavior. In October 2022, Ye introduced shirts with ‘White Lives Matter’ printed on them. West also went on an anti-Semitic spree, calling ‘def con 3’ on Jews. Due to his racially charged behavior, brands like Balenciaga and Adidas cut ties with him.
Kanye West and Adidas have the longest ties in the industry. The ‘Donda’ rapper’s Yeezy saved Adidas when its competitors were designing superior products as well as reporting exponential sales. When Ye and Adidas signed a deal in 2013, the financial prosperity of the shoe giant took place. In 2016, Adidas witnessed an 18% increase in its sales and extended the contract until 2026. But when West went on with his anti-Semitism, they severed ties with him, which caused them a heavy loss along with Ye. But now he has devised a plan to start a massive Yeezy store near Adidas as his answer to cutting ties with him.
Related: How Much Money Did Adidas Lose Due To Kanye West’s Termination?
Kanye West Is Building The Yeezy Headquarters Near Adidas Store In Los Angeles
After four years of formulating a contract, Adidas cut all ties with Kanye West and his brand Yeezy due to his anti-Semitism. In the statement, Adidas said, “Ye’s recent comments and actions have been unacceptable, hateful, and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect, and fairness.” The shoe giant faced a loss of $540 million.
Kanye West also lost his billionaire status after Adidas cut ties with him. However, now, as revenge, Ye is planning to open a new Yeezy headquarters in Los Angeles near an Adidas store. As per the Donda Times, Ye is opening an office near Melrose Avenue between N. Edinburgh and Laurel. A hair salon separates the Adidas store and Yeezy headquarters.
Ye set up the new YEEZY Office next to the Adidas store in Los Angeles
Let him cook pic.twitter.com/3ROewdsvNZ
— Donda Times (@dondatimes) May 3, 2023
The news came after Kanye West had to evict the first-ever space that he leased for the Yeezy headquarters. The 15,000-square-foot office space had to be evicted after the company failed to pay the $63,254 rent for two months. The original rent that the company agreed to pay was $31,477 per month. But it failed to pay the rent for November and December 2022. It is still unclear whether this is the reason for the shift of headquarters.
In Case You Missed: S&P Grades Adidas Poorly For Its Debt Rating After It Severed Ties With Kanye West
Adidas Will Donate The Proceedings Of The Sale Of Yeezy Shoes To Charity
Earlier, after severing ties with Kanye West, Adidas said that it would sell the Yeezy shoes in a revamped manner. It said that they are the “sole owners” of the designs of the Yeezys that are in circulation. Adidas reassured its shareholders that “Yeezy designs will, in fact, live on at Adidas after all, but they’ll have a completely different title when they drop.”
However, the picture is different now, in 2023. In the Q1 earnings call, the CEO of Adidas, Bjørn Gulden, admitted that there has been a 20% drop in sales of the Yeezy in America. The shareholders are suing the company for not paying heed to the 2018 report’s indications about continuing the ties with Ye.
Now, Adidas has $1.3 billion of Yeezy inventory with them. The company has decided to sell the shoes and divert the earnings to help organizations like the Philonise and Keeta Floyd Institute for Social Change and the Anti-Defamation League.
You Might Also Like To Read: Kanye West Files To Trademark The Yeezy Sock Shoes
