After cutting ties with extremist hip-hop artist Kanye West, a shoe company is now paying the price. According to CNBC, after the company’s CEO admitted that merchandise linked to the Nazi-loving rapper could impose a big cost Adidas’ shares then tanked.

Last year, in response to a series of anti-Semitic and pro-Nazi statements from the artist, Adidas terminated its merchandise partnership with Kanye West.

In an announcement released on Thursday that caused its stock price to plummet, the company acknowledged that it anticipated losing money in 2023. Losses are being fueled by the question of merchandise using the “Yeezy” trademark and connected to Kanye West.

CNBC added that Adidas might lose nearly $1.3 billion if it is unable to sell its current West-linked stock. However, with its inventory of products linked to West, the company is still actively assessing what to do with it.

The BBC reported that if Adidas is unable to sell shoes with the West name, it will suffer a profit loss of more than $500 million. And when Adidas terminated its partnership with West last year, West indicated that he anticipated losing $1 billion; losses that the company seems set to match.

Now, in a report by TMZ, the company had originally planned to sell its stocks of West-linked inventory without reference to West himself, a plan that hasn’t materialized. The New York Times reports said that on Friday after the corporate report, Adidas’ shares declined in price by more than 12 percent.

In a statement, Adidas CEO Bjørn Gulden said,The numbers speak for themselves. We are currently not performing the way we should.”

West is also dealing with various issues that are connected to his job in entertainment and music. Delaying a lawsuit over what he says is a breached contract; a former business manager claimed he had been unable to find West to serve a court summons in December.

Sources: WesternJournal,  The New York Times,  BBC,  CNBC


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