Adidas terminates Ye partnership, Gap removes Yeezy items over rapper’s antisemitic remarks

by | Oct 25, 2022 | Business

Adidas on Tuesday ended its partnership with Ye, formerly known as Kanye West, after the musician made a series of offensive and antisemitic comments.Hours later, Gap and then Foot Locker said they would immediately remove Yeezy products from its stores.”Foot Locker, Inc. does not tolerate any form of antisemitism, or hateful and discriminatory behavior. While we remain a partner with adidas and carry a wide assortment of their collections – we will not be supporting any future Yeezy product drops,” a Foot Locker spokesperson said.Gap also shut down, which now redirects to the Gap website.”Antisemitism, racism and hate in any form are inexcusable and not tolerated in accordance with our values,” said Gap, which announced in September that it would end its partnership with Ye. The clothing retailer said at the time it would sell through its remaining Yeezy inventory.Gap and Foot Locker’s statements echoed what Adidas said earlier. “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 company said.”After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies. Adidas will stop the Adidas Yeezy business with immediate effect.”Adidas’ decision also cost Ye his billionaire status. Forbes estimates that without the Adidas deal, his net worth has dropped to $400 million, which comes from his music catalog, real estate and his 5% stake in ex-Kim Kardashian’s shapewear company, Skims. Forbes valued his Adidas deal as adding $1.5 billion to his net worth.The German sportswear giant had faced pressure from the public and its own employees to cut ties with Ye, who said on a podcast on Oct. 16: “I can say anti-Semitic things, and Adidas can’t drop me. Now what?”Calls on Adidas had also come from at least three legal organizations, as well as anti-racism groups. A petition set up by the Campaign Against Antisemitism urging Adidas to sever ties with Ye had gathered 169,100 signatures by Tuesday morning.The Anti-Defamation League, StopAntisemistism and the International Legal Forum applauded the move by Adidas on Tuesday.”In the end, Adidas’ action sends a powerful message that antisemitism & bigotry have NO place in society,” the ADL’s statement said.Talent agency CAA confirmed it had dropped Ye as a client Monday, and he was let go by Balenciaga last week.Twitter and Instagram blocked him over antisemitic remarks. Conservative social media platform Parler then announced Ye had agreed to buy it.CNBC has contacted representatives for Ye and has yet to receive a reply.Impact on AdidasAdidas said this would have a short-term negative impact of up to 250 million euros ($246 million) on net income in 2022 due to high seasonality in the fourth quarter.It added that it was the “sole owner of all design righ …

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