Seven months after cutting ties with the rapper, Adidas is sitting on a $1.3 billion pile of unsold shoes.
Months after Adidas (ADDYY) made the decision to separate itself from Ye — the rapper formerly known as Kanye West — the German shoe maker is still dealing with the fallout.
This week the company had previously announced that the loss of the Yeezy brand cost the company $441 million in sales, and now, the company says that it has $1.3 billion worth of unsold Yeezy stock that it doesn’t know what do with nearly seven months after cutting ties.
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“When it gets to the Yeezy, there is nothing else to say than what we said last time. We are working on different options. The new thing is now that all the inventory is now on our books,” new CEO Bjorn Gulden said.
“Most of the inventory are in the right warehouses and that we could theoretically sell product if and when and how is still in the evaluation.”
Adidas basically has two choices. Sell the backlog Yeezy inventory or not. But Gulden says the company is still working through multiple different scenarios.
“The decisions are getting closer and closer because that’s the way it is. And we have spoken to all interesting parties many times, and there are three, four scenarios that are now building,” Gulden said.
But it certainly sounds like the company is just waiting for the right time to sell off the product.
“Don’t also forget that should we be able to start to sell off the Yeezy product in one way, shape or form that has a lot of work for us because that’s a complicated thing right now,” Gulden said.