After the collaboration with Kanye West ended, the three-tiered firm is interested in the future of the pieces produced from the series developed with the rapper.
For nearly nine years, plastic clogs and other Yeezy sneakers were the German firm’s booming business. That’s until October 2022, a period that coincides with when Kanye West began making anti-Semitic remarks at all costs. The rapper, who launched the line in collaboration with Adidas, saw his contract with the gear supplier terminated overnight and his net worth dropped by $1.5 billion in one day, according to Forbes. A financial meltdown that led to his expulsion from the billionaire circle.
Hundreds of millions of unsold euros
This divorce was also enough to accelerate the losses of the company with which he was associated. In 2019, according to Forbes estimates, the income received in this line was successfully crowned before the divorce amounted to 1.3 billion dollars. Not selling the Yeezy inventory would result in a $1.2 billion decrease in revenue and a $500 million decrease in operating profit, Adidas said in a statement. The company will eliminate a total of 700 million euros in operating losses by 2023. “Currently, we are not as efficient as we should be,” laments Adidas’ new CEO Björn Gülden, the ex-Puma man who has been in charge since the start. in January, when he announced his financial outlook for the new year. And concluding on a positive note. “I am confident that we will make Adidas shine again.”
It remains to highlight the important bets of dormant stocks. this mountain of unsold goods is estimated at several hundred million euros. We don’t know their exact contents, but the controversy raises questions about their future. On February 9, Adidas stated that it was exploring “future options for Yeezy inventory.”
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End of life of the garment in question
Among them is the option of resale despite the damaged image. In November 2022, Adidas chief financial officer Harm Ohlmeyer confirmed to Insider magazine the OEM’s intention to market the models under its name alone, claiming that it is “the sole owner of all design rights associated with existing products” as well as previous and new colorways within the partnership. “. So far, this solution has not been implemented. But then, where are the Yeezy sneakers hiding to die for? Several ways are possible.
Give up? Disposing of unsold products may be an environmental distraction, but it is a common practice in the textile industry. Increasingly embarrassing for the image of brands that practice it, it tends to be more sanctioned.. Many states are exploring the concept of extended producer responsibility, which includes brands at the end of a garment’s life. France is the only country to date that has enacted legislation on this subject.
Should we apply for a donation? Some fashion schools, such as Casa 93 in France, use pieces donated by brands to reuse materials. As for the associations, some of them are already in contact with Adidas, which claims that donating to international aid organizations is part of its practice, without naming the beneficiaries.
What about recycling? Adidas has embarked on this path (targeting to produce 100% recycled polyester by 2024). A foundation-supported approach A conversation for the ocean which collects plastic waste fished from the seabed. As for the recycling of its sneakers, it only applies to those models that are intended for repeated use under the collected label. Made for Remade. The struggle between financial issues and ethical issues unites some of the major current problems of the industry, which is the sixth most polluting country in the world (The Eco Experts 2022). A new school case in perspective.
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Source: Le Figaro
