The sportswear company said its net profit is expected to drop to $246 million this year as a result of the decision.
Adidas has ended its partnership with the rapper formerly known as Kanye West due to his offensive and anti-Semitic remarks. ties with Ye and a decision that the German sportswear company says will hit its bottom line.
“Adidas does not tolerate anti-Semitism or any other form of hate,” the company said in a statement on Tuesday. “E’s recent comments and actions were inappropriate, hateful and dangerous, and they violate company values such as diversity and inclusion, mutual respect and fairness.”
The company has faced pressure to cut ties with Ye, with celebrities and other social media users calling on Adidas to take action. The company revealed earlier this month that it was reviewing its lucrative sneaker deal with the rapper.
Adidas said on Tuesday it had conducted a “thorough review” and would immediately cease production of its Yeezy product line and stop payments to Ye and his companies. The sportswear company said it expects its net income to fall to 250 million euros ($246 million) this year due to the decision.
The move by Adidas, whose CEO Kasper Rorsted is stepping down next year, comes after Ye was suspended from Twitter and Instagram this month over anti-Semitic posts that the social media say violate their policies. .
Forbes magazine reported that it valued Ye’s stake in the Adidas deal at $1.5 billion. The end of this partnership deal meant that his net worth was reduced to $400 million, the report said.
According to Forbes, the rest of Ye’s fortune consists of real estate, cash, his music catalog and a 5 percent stake in ex-wife Kim Kardashian’s shapewear company Skims.
Chain of disputes
He recently suggested that slavery is a choice and, among other comments, called the COVID-19 vaccine “the mark of the beast.” He was also criticized for wearing a “White Lives Matter” T-shirt to his Yeezy collection show in Paris.
Ye’s talent agency, CAA, has dropped him, and MRC announced on Monday that they are postponing a full documentary about the rapper.
Fashion house Balenciaga broke off ties with Ye last week, according to Women’s Wear Daily. JPMorgan Chase and Ye have ended their business relationship, even though the bank failure was in preparation before Ye’s anti-Semitic comments.
In recent weeks, Ye has also ended his company’s partnership with US retailer Gap Inc and told Bloomberg that he plans to sever ties with his corporate suppliers.
On Tuesday, Gap said it was taking “immediate steps” to remove Yeezy Gap products from its stores and shut down YeezyGap.com. “Anti-Semitism, racism and hatred in any form is unforgivable and unacceptable in accordance with our values,” the company said in a statement on its website.
After being suspended from Twitter and Facebook, Ye offered to buy the conservative social network Parler.
The 24-time Grammy-winning rapper has built a reputation not so much for his music as for causing controversy since 2016, when he was hospitalized in Los Angeles for what his team called stress and exhaustion. It was later revealed that he was diagnosed with bipolar disorder.
Jewish groups have pointed out the danger of the rapper’s comments during a rise in anti-Semitism. Such incidents in the US reached an all-time high last year, the Anti-Defamation League said in a letter to Adidas last week urging him to break with E.
On Saturday, demonstrators on a flyover in Los Angeles unfurled a banner praising Ye’s anti-Semitic comments, sparking outrage on social media from celebrities and others who said they supported the Jewish people.
Jewish groups welcomed Adidas’ decision but said the move was overdue. The World Jewish Congress noted that during World War II, Adidas factories “produced supplies and weapons for the Nazi regime using slave labor.”
“I wish the German company, which was also linked to the Nazi regime, would take a clear stand earlier,” Josef Schuster, president of the Central Council of Jews in Germany, the main Jewish group in the country where Adidas is headquartered.
“Adidas has done a lot to distance itself from its past and, like many sports brands, is one of those companies that campaign against anti-Semitism and racism on a massive scale. That’s why an earlier breakup with Kanye West would have been appropriate,” Schuster said in a statement.
Credit: www.aljazeera.com /