Since Adidas has been considering burning its inventory of over $500 million in Yeezy sneakers, CNN reported Adidas received over 500 offers for the unsold stock, giving them a possible solution. However, CEOs at Adidas still need to decide if they should sell, destroy, or donate the stock.
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Over 500 Offers For Unsold Yeezy Sneakers
After ending the 9-year collaboration with Kanye West [Ye] because of his repeated antisemitic remarks, Adidas seriously considered burning their unsold stock of over $500 million in sneakers. Luckily for them, many resellers have stepped up and made offers to the company, possibly giving them another avenue to escape this issue.
Adidas CEO, Bjørn Gulden, discussed the issue with analysts during the company’s earnings call on Wednesday and provided his opinion on all their options, stating that he believes that selling the stock to a prospective reseller might still not be the best thing to do. “I think our goal is to do what damages us the least and that we do something good” in the process as well.
Donating to Charity
Adidas had initially decided to continue selling the Yeezy line while stripping the items of their name and branding. Although this seems more profitable, the brand with the three stripes is interested in something other than profit. To preserve their reputation, they think, “We can sell it with a small margin and give the margin away for different donations,” referring to charity organisations.
When asked why they would consider this over simply donating the shoes to charity, Gulden responded with understanding but explained, “Of course, of course. But the people saying send shoes to Turkey or somewhere where people don’t have shoes, or there has been a tragedy, I think you would agree that these are not normal shoes.” Although charitable organisations accept almost any items for those who need them more, there is also the chance that they wouldn’t want anything to do with a brand with antisemitic connections.
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Burning Is Still on the Table
Although a highly controversial route, burning the $500 million worth of stock remains on the table. Of course, the Adidas execs have considered all of the risks and implications of this method and will treat it as a last resort. When asked about this solution, Gulden did comment on the environmental consequences of it, saying that it wasn’t the most excellent idea.
“Then you have another issue. People will say you cannot destroy it because it’s a sustainability issue, right?” This option’s primary concern is the environmental and sustainability impact, as Adidas are ready to write off the shoes anyway.
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Could Return to Popularity
Despite the antisemitic connection, the shoes could become famous again thanks to their premium status as a luxury sneaker brand. After all, the high value of the sneakers isn’t about the materials they use to make them but their brand and price. To validate this idea, some secondary resale market insiders have mentioned that the demand for resold Yeezy sneakers has surged because of limited supply, increasing the demand. So despite Ye’s controversial presence in the media, the Yeezy merch is selling somewhere.
RELATED: adidas Drops Kanye & Yeezy
TL;DR
- Adidas has received over 500 offers for their unsold Yeezy stock, estimated at $500 million.
- Adidas is considering all of its options, including donations.
- Burning the overstock is still on the plate, despite its controversy.
Of course, you can still pick up some of the original Yeezy releases online at GOAT.com.
