Adidas to sell Yeezy products donating portion of proceeds to charity

Adidas is set to sell €1bn-worth of Yeezy stock in a charity fire sale after the company cut ties with designer Kanye West over his anti-Semetic behaviour.

The sportswear giant said on Thursday that it planned to sell a stockpile of unsold Yeezy trainers that it has accumulated since cutting ties with West last October. This move followed a string of shocking anti-Semitic comments made by the designer and rapper.

The immediate halt left the company with millions of Yeezy shoes worth more than £870 million (€1 billion).

Adidas has decided against destroying the trainers, instead, it would "try to sell parts of the product" and donate some of the proceeds to charities representing those affected by West’s comments.

The decision has cost Adidas millions in sales and has it facing its first annual loss in more than three decades. The discontinuation of Yeezy represented a drag of around £349 million (€400 million) year-on-year, according to the company's Q1 financial report.

Despite Adidas' decision to take action, many presale companies continue selling Yeezy shoes, reporting that they remain wildly popular in the resale market.

Chief executive Bjoern Gulden said the company was still working out how the sales would happen.

At the company's annual shareholder meeting, Gulden commented: "What we are trying to do now over time is to sell some of this merchandise... burning the goods would not be a solution."

Adidas is also being sued by investors claiming that the company knew about Kanye West's problematic behaviour years prior to the partnership's end. Investors allege the company of failing to limit financial losses and take preventive measures.