Things are not looking good for the leading sports brand Adidas.
The company mentioned how it has tons of Yeezy stock leftover and the only way forward is to burn it down, causing it a huge loss worth billions.
Sources from local media outlets claim that the loss would be a huge hit for the firm, one of the biggest to arise in the past 30 years.
The shocking news came yesterday after the firm outlined its results and it was striking to see such a huge company speak on the matter about losses that have not been done on this magnitude in the past.
Yes, the news is shocking but it’s not all negative as there was a little optimism being displayed in the office where the firm’s top executive mentioned that they were not going to sit back and watch all this take place.
They will hope to make bigger profits in the year 2024 and that would assist them in covering up such a mighty loss.
After sharing its annual financial results with the board and the world on Wednesday, Adidas did go on to mention in detail how this arose after the entire failed partnership with rapper Kanye West.
Hundreds of brands opted to take a step back from working with the star as he began to display a very bizarre and controversial persona in the public eye, leading to criticism from those working with him.
Hence, now, the firm plans on slashing dividends to shareholders to overcome such losses.
The biggest problem at this moment in time for the company has to do with what it intends on doing with the leftover stock. And by the looks of it, since it cannot get resold, we’re seeing it go down the drain through the likes of a possible ‘burning ceremony’ which many called out as an absolute shame.