Adidas AG reached an out-of-court settlement with rapper Ye that concludes all claims connected to the sportswear makerâs decision to end their partnership two years ago.
âBoth parties said we donât need to fight anymore and withdrew all the claims,â chief executive officer Bjorn Gulden told journalists in a call. The agreement didnât include any payments, he added. âNo one owes anybody anything anymore. So whatever was is history.â
The German company cut ties with the rapper and designer Ye, previously known as Kanye West, following a rash of offensive behaviour, including antisemitic comments. The Yeezy line accounted for about half of Adidasâs total profits before the split, according to analysts.
The sportswear company was stuck with some â¬1.2 billion ($1.3 billion) of unsold Yeezy shoes and merchandise after the end of the partnership, and has been gradually selling it down ever since. It expects to be done with the brand by the end of this year.
By Sonja Wind
Learn more:
Case Study | The Strategy That Brought Adidas Back From the Brink
Adidas has mounted one of the more remarkable turnarounds in recent memory after facing a crisis two years ago from the end of its Yeezy business. BoF spoke to chief executive Bjørn Gulden and other members of Adidasâ leadership to unpack how a series of bold decisions on products like its Samba sneaker, a move to refocus the brand on athletes and internal shifts brought Adidas back from the brink.
