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14 Feb 2023


NextImg:Adidas Shares Tank After Company Warns It May Lose Over $1 Billion After Dropping Kanye West

A shoe company is paying the price after cutting ties with extremist hip-hop artist Kanye West.

Shares of Adidas tanked after the company’s CEO admitted that merchandise linked to the Nazi-loving rapper could impose a big cost, according to CNBC.

Adidas terminated its merchandise partnership with West in response to a series of anti-Semitic and pro-Nazi statements from the artist last year.

The company admitted that it expected to lose money in 2023 in a Thursday announcement that sent its stock price plummeting.

The question of merchandise connected with West under the “Yeezy” trademark is fueling its losses.

Adidas stands to lose about $1.3 billion if the company is unable to sell its existing West-linked stock, according to CNBC.

The company is still actively assessing what to do with its inventory of products linked to West.

Adidas anticipated a profit loss of more than $500 million if it proves unable to liquidate West-branded shoes, according to the BBC.

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West disclosed that he anticipated losing $1 billion from Adidas’ termination of its partnership with him last year — losses that the company appears poised to match in turn.

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The company had originally planned to sell its stocks of West-linked inventory without reference to West himself, a plan that hasn’t materialized, according to TMZ.

Adidas’ shares declined in price by more than 12 percent on Friday after the corporate report, according to The New York Times.

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“The numbers speak for themselves. We are currently not performing the way we should,” Adidas CEO Bjørn Gulden said in a statement.

West is facing other problems pertaining to his music and entertainment career.

A former business manager claimed he had been unable to find West to serve a court summons in December, delaying a lawsuit over what he says is a breached contract.

This article appeared originally on The Western Journal.