What will become of the huge stock of Yeezy, Kanye West sneakers that embarrass Adidas?

For nearly nine years, plastic clogs and other Yeezy sneakers have been the flourishing business of the German firm.

This, until October 2022, a period which coincides with that where Kanye West began to utter anti-Semitic remarks at all costs.

The rapper who is at the origin of this line designed hand in hand with Adidas, saw his contract with the equipment supplier stopped overnight and his wealth cut by 1.5 billion dollars in one day, according to Forbes estimate.

A financial debacle leading to his eviction from the circle of billionaires.

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Hundreds of millions of unsold euros

This divorce was also enough to precipitate the losses of the company with which he was linked.

In 2019, according to estimates by Forbes, the income generated by this line crowned with success until the divorce amounted to 1.3 billion dollars.

Failure to sell Yeezy inventory would result in a $1.2 billion drop in revenue and a $500 million drop in operating profits, Adidas said in a statement.

The firm would wipe a total of 700 million euros in operating losses in 2023. "Currently, we are not as efficient as we should be", lamented Bjørn Gulden the new general manager of Adidas, ex-Puma, who took office at the beginning of January, when he announced his financial outlook for the new year.

It remains to disentangle the crucial stakes of dormant stocks: this mountain of unsold items is estimated at several hundred million euros.

We do not know their exact contents but, splashed by controversy, their future raises questions.

On February 9, Adidas indicated that it was exploring “future options for the use of Yeezy inventory”.

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The end of life of the clothes in question

Among them, the resale option despite a tattered image.

In November 2022, Adidas chief financial officer Harm Ohlmeyer confirmed to Insider magazine the OEM's intention to market the models only under its own name, claiming to be the sole owner "of all design rights related to existing products. , as well as the previous and new colors within the framework of the partnership”.

So far, this solution has not been applied.

But then, where will Yeezy sneakers hide to die?

Several paths are possible.

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Discard ?

The destruction of unsold goods may be an ecological aberration, but it is a common practice in the textile industry.

Increasingly embarrassing for the image of the brands that practice it, it tends to be more sanctioned

Many states are studying the concept of extended producer responsibility, which involves brands in the end of life of clothing.

France is to date the only state to have legislated on this subject.

Should we then turn to the donation?

Some fashion schools like 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 practices, without specifying the beneficiary names.

What about recycling?

Adidas has embarked on this path (with a target of 100% recycled polyester in its production by 2024).

An approach supported by the

Foundation , which collects plastic waste recovered from the seabed.

As for the recycling of its sneakers, it only concerns models designed to be reusable, brought together under the

Arm wrestling between financial issues and ethical issues, the case brings together some of the major current issues of an industry that ranks sixth among the most polluting in the world (The Eco Experts 2022).

New school case in perspective.