Adidas Ends Ye Partnership After String of Controversies

Adidas is ending its partnership with Ye after a series of offensive behavior from the rapper and designer that turned a once-thriving shoe brand into a lightning rod for criticism.

The German sports company confirmed that it is cutting ties with Ye. In the current fiscal year, the company will take a hit of up to 250 million.

The company said thatYe's recent comments and actions violate the company's values of diversity and inclusion.

All payments to Ye and his companies will be stopped by Adidas after the partnership with Ye ends.

Gap Inc. and Kering SA have severed ties with Ye. The rapper moved to cut ties with his corporate partners after making controversial statements on social media. The person could not immediately be reached for comment.

Adidas shares fell as much as 4.5% to their lowest level in more than two years.

Soured Partnership

The Adidas decision follows weeks of deliberations inside the company, which over the past decade has built the Yeezy line -- together with Ye -- into a brand that's accounted for as much as 8% of Adidas's total sales.

All design rights to existing products, as well as previous and new ones, are owned by the German company. The third-quarter earnings will include more details.

The partnership was described by Adidas as one of the most successful collaborations in the history of the industry.

There was a lot of acrimony between the partners. Ye accused Adidas of copying his ideas and taunting the outgoing CEO on social media. Adidas said it failed to resolve issues with Ye privately.

There are corporate deals after the gap.

In September, the rapper said he wanted to negotiate with Adidas to get a 20% royalty on the shoes he designs.

At the Paris fashion week, Ye wore a shirt that said "White Lives Matter". He was locked out of his social media accounts after making antisemitic comments that caused a backlash from consumers and celebrities.

The Ye controversy is one of the headaches for Adidas, which is looking for a new CEO. The company has lowered its earnings forecast multiple times this year due to falling demand for its shoes and apparel in China and signs of economic trouble in Europe and North America.

The next CEO of Adidas faces a tough job with unsold shoes.

AlbertinaTorsoli assisted.