Adidas cut ties with Ye, formerly known as Kanye West, on Tuesday following the musician’s harsh and antisemitic remarks in the past few weeks.
In a statement, Adidas stated: “Adidas does not tolerate antisemitism and any other sort of hate speech. 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 public and its staff have urged the German sportswear behemoth to sever ties with Ye after Ye spoke on a podcast on October 16: “I can say anti-Semitic things, and Adidas can’t drop me. Now what?” At least three legal organizations and anti-racism organizations had also contacted Adidas.
The former halo effect of Ye’s fame turned into an Achilles heel after he attended Paris Fashion Week earlier this month wearing a shirt that read “White Lives Matter,” and he later made antisemitic comments on social media and in several interviews, tweeting that he would “death con 3 On JEWISH PEOPLE”. There have been some indications that the fashion industry is moving away from Ye.
After Bloomberg reported earlier in the day that Adidas planned to discontinue the collaboration, the company’s stock slumped 4% in morning trade in Frankfurt, Germany.
On October 6, the business started a review of the alliance; but, since that date, it has received harsh criticism for its inaction.
Due to high seasonality in the fourth quarter; it is predicted that this would have a short-term negative effect on net income in 2022 of up to 250 million euros ($246 million).
In 2013, the German business started working with Ye, and in 2016 they agreed to produce and sell his Yeezy apparel line. According to Adidas, one of the most fruitful partnerships in the history of its sector. The alliance has had a “tremendous impact” on the company’s operations.
However, Ye has recently made public criticisms of Gap, one of his other business partners, as well as Adidas. He complained to CNBC that Adidas was “copying” his ideas. He also launched social media rants against the business, focusing on board members and CEO Kasper Rorsted in particular.
Credit Suisse analysts outlined several firm concerns in a note released on Tuesday before the news, including a recent profit warning that was larger than anticipated.
Ye’s agents have been contacted by CNBC, but they have not yet responded.
#Peace.Love.Ye
