A commercial dispute between sportswear company Adidas and rapper and fashion designer Kanye West, now known as Ye, has led to a lawsuit against the company.
Disgruntled shareholders are suing the company, as are Bjorn Gulden, CEO, and Harm Ohlmeyer, CFO, for not ending their partnership with the artist sooner despite “already knowing about his hateful rhetoric.”
The songwriter, whose marriage to reality TV star Kim Kardashian ended at the same time as his retail deal with Adidas failed, is not a party to the lawsuit.
Adidas cut ties with West when the artist posted anti-Semitic comments on social media after showing a T-shirt design called “White Lives Matter” at Paris Fashion Week last October. At the time, the sportswear brand said it would “not tolerate anti-Semitism or any other form of hate speech.”
Other companies, including Vogue, Balenciaga and Gap, also ended their partnership with the wealthy music producer.
Adidas said last month that ending its partnership with it cost the company £534m (€600m) in the final three months of 2022 and warned investors that profits could fall by at least £444m this fiscal year. 500 million euros), and the euro may rise. may decrease.
As part of the repurposed deal, Adidas agreed to sell its existing range of the rapper’s popular Yeezy shoe line and not include his clothing line or new designs.
The German company admitted that the losses could lead to losses for the company for the first time in 30 years.
The lawsuit, filed in U.S. District Court in Oregon, alleges that even before the public outcry in late 2022 over the rapper’s anti-Semitic remarks, Adidas “knew of West’s hateful rhetoric, including his desire to name a new name.” . Album Hitler.
The defendants are accused of not reducing the financial losses of shareholders in a timely manner and not taking precautions.
The lawsuit alleges that Adidas senior management, including former CEO Kasper Rørsted, were so concerned about the risk of continuing a relationship with Kanye West and the resulting reputational damage that they spoke out as early as 2018, four years before make it official. partnership. .
It cites a 2018 presentation to Adidas board members cited by the Wall Street Journal that highlights the risks to employees of dealing with Mr. West and details “strategies to soften the relationship,” including cutting ties with the designer. .
It is alleged that Adidas did not act because the Yeezy shoe line was very profitable for the company.
The multinational sportswear company is also investigating allegations of inappropriate behavior by the designer and musician towards employees who worked on the brand.
An unsigned open letter reportedly came from senior employees alleging that many employees were victims of abuse and misconduct in the workplace.
The letter calls on new CEO Björn Gulden, who took over in January, to “tackle the toxic and chaotic environment that Kanye West has created.”
Adidas has previously stated that the company will not tolerate hate speech and offensive behavior and will continue to discuss with employees the events that led to the decision to end their partnership with Kanye West.
Adidas and Ye contacted for comment.
Source: I News
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