In a statement Friday, Adidas said that they will start selling its $1.3 billion pile of unsold Yeezy sneakers and other items near the end of May and donate the proceeds to charities.
The company initially cut ties with Ye, the rapper formerly known as Kanye West, in late October, following his antisemitic comments on social media and in interviews. Since then, the fate of 1.2 billion euros ($1.3 billion) worth of the unsold Yeezys, a lucrative sneaker line launched with Ye, has been up in the air.
The sportswear giant had spent several months evaluating its options, including possibly destroying the remaining inventory entirely, but investors were told that “burning several million pairs [of shoes] does not make sense.”
“What we are trying to do now over time is sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye’s statements,” Adidas CEO Bjørn Gulden said.
“We believe this is the best solution as it respects the created designs and produced shoes, it works for our people, resolves an inventory problem, and will have a positive impact in our communities,” he added. “There is no place in sport or society for hate of any kind and we remain committed to fighting against it.”
The products that will be sold later this month will include existing styles and designs it started with back in 2022 and intended to sell this year, Adidas said in a release. They’ll go on sale exclusively through the Adidas website and its confirmed app.
A “significant amount” of the sales will go to organizations that combat racism and discrimination, including the Anti-Defamation League, a Jewish NGO specializing in civil rights law, and the Philonise & Keeta Floyd Institute for Social Change, a group run by the sister of George Floyd that aims to deliver community programs.
However, while Adidas will be giving its remaining Yeezy profits to charity, it will also be rewarding West with 15% commissions, which was previously agreed upon according to Reuters.
