Adidas cuts ties with rapper Kanye West

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Image Source: LA Times

Kanye West, a rapper, has severed ties with the clothing giant Adidas. The sportswear company stated that it “does not allow antisemitism and any other type of hate speech.”

After Kanye debuted a “White Lives Matter” T-shirt design during Paris Fashion Week. Adidas reevaluated its partnership with the Yeezy label.

A few days later, the rapper made anti-Semitic remarks on Twitter.

Adidas announced that it would immediately stop selling Kanye West’s items.

The sportswear firm has previously stated that the Yeezy brand’s partnership with Ye was one of its most successful ventures.

Due to ending the partnership, Adidas will experience a net loss of £217 million in 2022.

Ye, diagnosed with bipolar disorder, had already claimed in a since-deleted Instagram post that Adidas had stolen his designs.

Adidas stated on Tuesday that it does not accept antisemitic or other forms of hate speech. However, ye’s recent remarks and actions are intolerable and dangerous and go against the company’s values of inclusivity, respect, and justice.

Kanye loses other deals

Following his anti-Semitic comments, Twitter and Instagram suspended Ye’s accounts. The pressure on his commercial connections has also grown: In recent months, JP Morgan and the clothing brand Gap announced that they were ending their collaboration with Ye.

Ye claimed that Gap had broken their agreement by failing to create freestanding outlets for his Yeezy clothing line, among other things.

In a statement released Tuesday, Gap said it would take Yeezy Gap merchandise out of its shops and close the website.

Adidas reviewed its connection with Ye when Ye wore a “White Lives Matter” T-shirt, but the firm did not cite the collection specifically as the cause of the review.

It informed the BBC that it had decided to reassess the cooperation following “multiple efforts to informally resolve the problem” following Ye’s accusation that it had “stolen” his designs.

Ye’s relationships with high-end fashion label Balenciaga and talent scouts Creative Artists Agency were also severed earlier in October.

The newly finished rapper documentary by MRC, a film and television production company, will be broadcast on Monday.

Kanye loses billionaire status

After the announcement, Adidas stock dropped as much as 8%, though it has subsequently recovered some of those losses.

In its most recent financial prediction, released in October, Adidas cautioned about the deterioration in its Chinese business. The decreased consumer demand in important Western markets has strained its profit forecasts for 2022. In addition, the company is looking for a new CEO after stating in August that Kasper Rorsted, the current CEO, would step down in 2023.

Adidas has finally joined other companies and organizations and severed relations with Ye.

A spokesperson said the milestone was possible thanks to the 175,000 petitions received. In addition, well-known individuals and global influencers supported its promotion and amplified the message.

Additionally, the rapper dropped off Forbes magazine’s list of billionaires. According to the magazine, Ye’s net worth decreased from $1.5 billion to $400 million as a result of the loss of the Adidas agreement.

The $250 million lawsuit

Kanye West was the target of a $250 million lawsuit from the family of George Floyd due to remarks he made regarding Floyd’s passing on the podcast Drink Champs.

Read Also: Adidas puts Kanye West Yeezy deal under review 

Roxie Washington, the mother of Gianna Floyd, the only child of George Floyd will bring the action. Washington will sue Ye, his business partners, and colleagues for “harassment, misappropriation. In an attempt to recover $250 million in damages.