YEEZY
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Kanye West and YEEZY continue to take Ls.
A New York court ordered Ye and his company, YEEZY, to fork over $300,000 to a Brooklyn-based freelancer who was the creative director for those ugly-ass sunglasses.
The plaintiff, Katelyn Mooney, slapped West and his fledgling brand with a $300,000 lawsuit in December 2022 for unpaid invoices and other damages, claiming the brand hired her to shoot the SHDZ sunglasses line.
Mooney claims the agreed-upon number was $110,000 for her work but only got $15,000. Per Hypebeast, there was no contract, but everything was discussed via text messages with a YEEZY employee, and she has receipts in the form of invoices.
In her lawsuit, Mooney claims that she had to “max out her credit cards” and take out loans to pay her rent and cover unpaid bills from the shoot.
Kanye West and YEEZY are responsible for Mooney’s financial troubles after defaulting because they did not show up to court and failed to respond to court documents.
So where was Ye? Maybe he was too busy planning his struggle secret fashion show unveiling YEEZY or YZY Season 10 clothes and a new “sock-sneaker,” which will probably never see the light of day.
Or, he is busy getting ready to run for President again, as reports claim he is teaming up with far-right clown Milo Yiannopoulos again.
Who knows? Who cares? We just want this man to chill with his secret wife and get help.
But, unfortunately, it feels like some form of “YEEZY season” is coming, whether you want it to happen or not.
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Photo: MEGA / Getty
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Kanye West might be on the outs with the fashion industry due to his antisemitic rants and social media posts, but if y’all thought that would keep him away from the game, y’all don’t know the “Black Skinhead” rapper.
Highsnobiety is reporting that this past Monday (May 1), Kanye West held a secret fashion show for his YEEZY Season 10 line where he used a gang of models with shaved heads (of course) to rock his latest collection which consisted of tight tee-shirts and pants that would’ve made Derek Vinyard proud (American History X reference).
YEEZY SEASON 10’s set was sparse. It was held in a rugged-looking store in West Hollywood, with little of note aside from barren industrial walls, rows of lightly-dressed models holding candles, and a sound system.
Ye’s YEEZY SEASON 10 invite, posted by the typical Ye stan pages (Ye’s preferred form of communication these days), didn’t actually mention YEEZY SEASON 10 by name, simply stating YZY FREE as the event’s title.
Interestingly enough the event was held not too far from Adidas flagship store on Melrose as well. Could Kanye West be trying to troll Adidas for giving him the pink-slip or was it just a “happy” coincidence?
Regardless of whether or not Kanye is still holding a grudge against Adidas for making the logical choice of cutting ties with him after threatening to go “death con 3” on the Jewish community, it seems like he’s not giving up his designer dreams and will continue to produce attire that you’ll rarely see out in the wild on anyone in their right mind (no shots).
As for the people in attendance, everyone walked away with a free t-shirt that looks like it wouldn’t survive a single wash cycle. Just sayin.’
It will be interesting to see if Kanye actually produces these pieces on his own dime or is attempting to court another brand to take a chance on him in his current toxic state. Either way, we don’t see his new collection garnering much interest even on social media.
What do y’all think of Kanye West holding a secret Yeezy fashion show? Let us know in the comments section below.
A group of investors has filed a class action lawsuit against Adidas, alleging the sportswear giant knew about Kanye West‘s problematic “personal behavior” years prior to ending its partnership with the rapper but failed to warn them about it.
The complaint — representing people who acquired Adidas securities between May 3, 2018, and February 21, 2023 — also names Adidas’ former CEO, Kasper Rorsted, and CFO, Harm Ohlmeyer, as defendants, alleging the executives “employed devices, schemes and artifices to defraud” investors and that the company “failed to take meaningful precautionary measures to limit negative financial exposure” in the event the partnership was terminated as a result of West’s behavior.
West is not named as a defendant in the suit.
Filed Friday (April 28) in U.S. District Court in Oregon, the lawsuit’s “substantive allegations” cite comments made by West (now known as Ye) dating back to 2018, including a notorious TMZ interview in which the rapper called slavery “a choice.” The complaint goes on to point out that Adidas “stuck by” West following his comments and includes excerpts from Rorsted’s 2018 interview with Bloomberg in which he said, “We neither comment nor speculate on every single comment that our external creators are making.” It also includes various offensive comments West directed at the Jewish community as well as his quote, “I can say anti-Semitic things and Adidas can’t drop me,” made during the rapper’s October 2022 appearance on the podcast Drink Champs.
On October 25, 2022, just days after the Drink Champs episode aired, Adidas ended the partnership.
The suit also alleges that Adidas failed to make investors aware that the rapper made “offensive remarks at Company premises” and that the company’s publicly released reports between 2018 and 2021 did not acknowledge “serious issues affecting the partnership” in their “Business Partner Risk” sections. The sections did, however, acknowledge that “improper behavior” from entertainers and athletes representing the brand could have a “negative spill-over effect on the company’s reputation.”
Pushing back on the allegations, Adidas said in a statement to The Associated Press on Monday: “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them.”
The suit makes mention of the initial “positive impact” of West’s partnership with Adidas, and the $1 billion worth of sales Yeezy shoes hit by 2019. The Yeezy brand — owned by West and licensed to Adidas — became a streetwear pillar and ushered in a new era of popular style. However, West’s insensitive comments and actions eventually overshadowed his artistic talent.
After the partnership ended, Adidas reported a $540 million loss in the fourth quarter of 2022, partially due to unsold Yeezy clothing and shoes. The company has also projected a total loss of $1.3 billion in “full-year revenue” for 2023 resulting from the unsold products.
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Source: Taylor Hill / Getty
Ye aka Kanye West and his brand Yeezy brand are being sued for nearly 300 racks by a former employee who claims she’s owed as much in severance pay after she was allegedly fired without cause in 2021.
According to court documents obtained by TMZ, the ex-Yeezy employee in question, Dora Szilagyi, claimed the Donda rapper and producer convinced her to quit her job at Addidas—which ended its partnership with Ye last October—so that she could come work for his brand as Yeezy’s “Director of Product Innovation.” She was hired in June 2021 but by December of that year, she was let go for no discernable reason, her lawsuit claims.
From TMZ:
Dora claims she was promised a $275,000 severance payment if she was fired without cause after September 1, 2021 — but she claims it was never paid to her when she was let go in mid-December 2021.
In the suit, Dora says she doesn’t believe Kanye or his company ever intended to follow through on the severance package, and only dangled it to lure her from Adidas.
If what Szilagyi claims is true, that’s a pretty deplorable way for Ye to mess with someone’s livelihood. It’s one thing for the “Jesus Walks” rapper to fumble his own bag by going full YeDolf and alienating brands through antisemitic and pro-Nazi remarks (which his ex-employees have even accused him of making). But now he’s out here getting folks to quit good jobs to come work for him just to be fired shortly after and denied severance? Again, if it’s true, the plaintiff should get all her coins.
Also, maaaaybe it’s time for people to consider the possibility that Ye is not the employer they want.
Adidas is still wrestling with how to dispose of 1.2 billion euros ($1.3 billion) worth of Yeezy shoes after its breakup with the rapper formerly known as Kanye West, forcing the German sportswear maker into a big loss at the end of last year and expectations of more pain ahead.
CEO Bjorn Gulden said selling the popular line of shoes would mean paying royalties to Ye, who was dropped by Adidas five months ago after making antisemitic remarks on social media and in interviews. During an earnings call Wednesday, he pointed to “many variables” about what to do with the shoes now stacked in warehouses.
Destroying them could “raise sustainability issues,” though some companies have offered recycling solutions, said Gulden, who was named CEO after the blowup over Ye’s remarks. Restitching them to hide the Yeezy brand so they could be sold “is not very honest, so it’s not an option,” he added.
Suggestions to give them away to those in need in places like earthquake-hit Syria or Turkey would mean the product would “come back again very quickly” due to its high market value, “so that’s not really an option,” Gulden said.
If Adidas does decide to sell the shoes, “I can promise you that the people that have been hurt by this will also get something good out of it and get donations and proceeds in different ways, shapes or forms,” the CEO said.
Adidas split with Ye in October, following other brands that were facing pressure to end ties with the rapper over his antisemitic and other offensive remarks. The company is now struggling to find ways to become profitable again and replace its banner Yeezy line, which analysts have said amounted to as much as 15% of its net income.
The Ye breakup cost 600 million euros in lost sales in the last three months of 2022, helping drive the company to a net loss of 513 million euros. The decline, also attributed to higher supply costs and slumping revenue in China, contrasts with profit of 213 million euros in the fourth quarter of 2021.
More losses could be ahead, with the company forecasting a 500 million-euro hit to profit earnings this year if it decides not to repurpose the remaining Yeezy products in stock. The company is predicting a 2023 operating loss of 700 million euros.
Gulden said “so many companies” were willing to buy the popular shoes but that would mean paying royalties to Ye. Rumors that the company was in talks to sell them, however, “are not true.”
He had heard from “gazillions of people that have opinions about this, and of course when you’re sitting on the inside, it looks a little bit different than it looks on the outside.”
Gulden also said Adidas is still investigating former employees’ allegations that Ye created a toxic work environment and that the sportswear company knew about his problematic behavior and failed to protect workers.
The CEO called 2023 “a transition year,” saying “we can then start to build a profitable business again in 2024.”
Last year, fourth-quarter net sales were up a bare 1.3% at 5.21 billion euros from the same quarter a year ago. The company pointed to revenue dropping 50% in China and higher costs for supplies and shipping, which could not be offset by price hikes.
For the full year, the Herzogenaurach, Germany-based company said it made a net profit of 638 million euros on sales that rose 6%, to 22.5 billion euros.
Adidas also further shook up its leadership by replacing its top sales and marketing executives. Global sales head Roland Auschel will leave the company after 33 years and be succeeded by Arthur Hoeld, now head of the Europe, Middle East and Africa region.
Brian Grevy, head of global brands, will step down March 31. CEO Gulden will take on his product and marketing responsibilities.
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In a bid to get ahead of profit losses in the wake of its split with Ye aka Kanye West, Adidas intends to rebrand its Yeezy stock.According to reports, the global athletic brand pointed to a plan of repurposing its surplus of clothing and footwear already manufactured before its severing of ties with the controversial artist last October as a way to avoid a massive financial loss estimated at $1.3 billion. The company detailed this in a profit warning issued through its website last Thursday (Feb. 9th).
The move to repurpose the Yeezy stock under the Adidas name may play out through a couple of options. The first would see the company sell the inventory removing the Yeezy label and selling the product at its own stores and at a discount to other retail partners.
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Another option is for Adidas to sell the repurposed items in smaller markets outside of the United States. “Somewhere where it’s not visible in their primary markets would be one approach they might take”, said Marshall Fisher, a professor at the Wharton School at the University of Pennsylvania.
The brand could take the drastic move of destroying the remaining stock. The risk of further damaging its reputation is higher with this move as other companies who’ve done so have come under fire in the past. “We’ve seen that happen with other luxury brands out there who didn’t want to see their product discounted at the end of the season,” said footwear expert & former collaborator Matt Powell. Donating all of the stock is also on the table, and according to Fisher would go a long way to bolster Adidas in the eyes of consumers.
Adidas is still investigating the after-effects of ending the deal with Ye after he made several antisemitic comments last October. The brand said at the time that it does not tolerate antisemitism or other forms of hate speech. Shares in the company went down 11% after the news was announced.
—Photo: Source: Jeremy Moeller / Getty
Adidas on Wednesday lowered its earnings forecast for the year to account for losses from ending its partnership with the rapper formerly known as Kanye West over his antisemitic remarks.
The German shoe and sportswear maker cut its sales and profit outlook for the year as part of its third-quarter earnings statement, even as the company’s chief financial officer said the profitability of the Yeezy shoe collaboration with Ye had been “overstated.” The company would largely offset the impact of the breakup next year by no longer having to pay royalties and marketing fees for the brand, CFO Harm Ohlmeyer said.
The company halved its expectations for net profit from continuing operations to 250 million euros ($252 million) this year from 500 million euros. That matched its earlier statement that ending the partnership with Ye would cost it 250 million euros in profits.
Adidas also lowered its revenue forecast for the year to a low single-digit increase from a mid-single-digit increase.
The Oct. 25 split with Ye, with production of all Yeezy products halted and royalty payments ended, will leave Adidas searching for another star to help it compete with ever-larger rival Nike. Adidas also is facing internal upheaval, with its CEO Kasper Rorsted stepping down Friday. He was previously expected to hand over next year, but the company announced the quicker change on Tuesday as it named Puma CEO Bjørn Gulden as his replacement.
Adidas faced pressure to split with Ye as other brands did earlier over the rapper’s antisemitic comments in interviews and social media, including a Twitter post earlier this month that he would soon go “death con 3 on JEWISH PEOPLE,” an apparent reference to the U.S. defense readiness condition scale known as DEFCON. He was suspended from both Twitter and Instagram.
Adidas owns the rights to product designs except for the Yeezy name and is developing plans for what to do with existing inventory.
Ohlmeyer said on a conference call with reporters that the profitability of the Yeezy business had been overstated because its costs only included expenses directly related to the products and not central overhead costs borne by the company.
“In other words, it does not include any further central cost allocation for sourcing, digital, retail, or any other services that this part of our business has been benefitting from and that were essential for its success,” Ohlmeyer said.
“At the same time, we will save around 300 million euros related to royalties and marketing fees; in combination, this will help us to compensate the majority of the top and bottom line impact in 2023,” he said.
The Yeezy brand accounted for up to 15% of Adidas’ net income, Morningstar analyst David Swartz said in a note Oct. 26.
The company had already cut its full-year earnings forecasts five days before announcing its split with Ye. The earlier outlook revision cited slowing activity in China, where severe restrictions aimed at limiting the spread of COVID-19 have held back the economy, and clearance of elevated inventory levels.
Net income for the third quarter from continuing operations was 66 million euros, down from 479 million euros in the same quarter a year ago.
The decrease largely reflected 300 million euros in one-time costs, the majority of it from winding down the company’s business in Russia.
Adidas may have severed ties with Kanye West, but it looks like they’ll still be selling the remainder of his Yeezy products — just without his name attached to them.
According to reporting by Bloomberg, the athletic brand’s parent company Adidas AG will rebrand all Yeezy designs under the Adidas brand at the start of 2023. “Looking ahead, on our understanding, the company will not sell any Yeezy-branded products and all Yeezy products will be branded under Adidas brand,” said Morgan Stanley analyst Edouard Aubin in a note to his clients on Tuesday.
“Adidas has the rights to existing Yeezy product designs and can sell these using Adidas branding (not Yeezy branding) following the termination of the Yeezy partnership, which Adidas intends to do,” RBC analyst Piral Dadhania added in a separate statement. “Speaking to the company, it believes it can limit the loss of revenues through this strategy, and will also save on expenses related to royalty and marketing fees no longer payable in 2023.”
Per Bloomberg, a rep for Adidas didn’t respond to the financial outlet’s request for comment on the news, which broke the same day Adidas issued a statement about dropping Ye following his recent barrage of antisemitic comments in the media. “Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.”
Other brands and companies that have ended their relationships with West in the aftermath include Gap, Balenciaga, Foot Locker, TJ Maxx, CAA and more. Find a full list of the consequences West has faced here.