Adidas Still Unsure What to Do With $1.3B Yeezy Merch After Ye Split

What should a company do with a $1.3 billion stockpile of merchandise possibly irreparably contaminated by its association with a rapper’s extreme antisemitism?

As a result of canceling its profitable collaboration with Kanye West, Adidas executives are now pondering if the company would experience its first annual loss in three decades. Wednesday, the German sportswear manufacturer also disclosed a net loss of $540 million for the fourth quarter, blaming a portion of the decline on higher supply costs and lower revenue in China. Overall, chief financial officer Harm Ohlmeyer described 2018 as “disappointing,” while chief executive Bjorn Gulden declared 2023 a “transition year.”

It is unknown what will happen to the Yeezy-shaped elephant in the room. Gulden states that the company is considering selling off its remaining stock and donating the proceeds to do “something good.”