Adidas severed ties with Kanye West after rapper's anti-Semitic backlash. 




Adidas is in a pickle after Kanye West split as the German brand is sitting on a $500 million unsold Yeezy stock. It might tempted to burn them to dump them for good.Several analysts estimated product mass at approximately $300 million to $500 million. In return, the company is expected to shed up to $1.3 billion in profit losses in the current year, as per Financial Times.

“What makes this so dramatic is how big it is,” Wedbush analyst Tom Nikic told The Washington Post, adding that the Yeezy brand was raking in almost $2 billion in revenue in a year.That’s really a big, substantial part of (Adidas’s) business — and the abruptness with which it happened.Meanwhile, the German sneaker brand is mulling over options for their cache of Yeezy problem.Various solutions were floated, including selling the product at discount rates, shoe rebranding, or even burning the sneakers.

However, the brand suggests selling Yeezys without a label at a discount by changing them to “zombie Yeezys.“But that’s quite frankly a risky proposition,” Nikic told the daily.“It could backfire on them from a PR perspective. It would still look like they were profiting off of a collaboration with someone who made blatant antisemitic statements.”

While Adidas also considered product liquidation. Liquidating products in retail points to offloading product surplus to warehouses, particularly in developing countries, to sell the product for cents on the dollar.Almost everything you can imagine that is manufactured in the world is sold somewhere, somehow, at some price,” Mark Cohen, Columbia University’s director of retail studies, told the prominent paper.And these high-value Kanye West sneakers are going to wind up on people’s feet — maybe people who value the Kanye association or (people) who don’t care; they just want fresh, clean, modern footwear.”