Foot Locker refused to put surplus Yeezys on shelves over fears of a backlash from stocking the controversial rapper’s discontinued brand, according to a report.
The athletic footwear giant was among the many retailers tapped by Adidas to help sell off its remaining Yeezy inventory following its ill-fated partnership with the rapper formerly referred to as Kanye West, Complex reported.
Nonetheless, Foot Locker executives had a change of heart over fears it it could cause a public relations nightmare for associating with Ye, who was ousted from the lucrative partnership with Adidas in October following a string of antisemitic and other offensive remarks, an unnamed source told the outlet that.
Adidas has been selling its remaining Yeezy prodcuts and donating a significant slice of the sales to five organizations that combat racism and antisemitism, including the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, founded by George Floyd’s brother.
The donation could reportedly exceed $9 million, though a final decision hasn’t been made.
Foot Locker wasn’t able to integrate a charity aspect into its sale of Yeezys, sources told Complex.
Foot Locker didn’t respond to The Post’s request for comment.
Adidas grappled with what to do with its unsold Yeezy sneakers, even considering burning as much as $500 million value of inventory earlier this 12 months.
Experts warned against the move.
While its relatively commonplace for brands to torch its unsold product, it was considered the “worst consequence” since it wouldn’t generate revenue and will spark backlash over waste and environmental costs.
The German sportswear giant ultimately decided to sell the product in batches with a charitable component that shows it doesn’t support Ye’s shock outbursts about Jewish people.
The primary batch of 4 million Yeezys went up on the market in June and sold off inside 48 hours.
Sources told the Financial Times that there was a surprisingly high demand for the shoes — a lot in order that Adidas wouldn’t give you the option to meet all of the orders.
The multimillion-dollar selloff means the corporate likely won’t have to take an enormous writedown on its remaining stock.
Ye will reportedly receive royalties on the sale, though it’s unclear how much.
Forbes estimated that Ye made $220 million annually from the partnership, which began in 2019.
Proceeds from the sale are also going to be used to pay costs related to ending the partnership, including legal fees, closure of production capability and shedding staff.
By 2019, Yeezy eclipsed $1 billion in sales annually, skyrocketing Ye’s net value.
Nonetheless, Ye fell out of the billionaire ranks after a string of public meltdowns pushed Adidas to cut ties.
Though excess Yeezy inventory hurt the corporate’s profit in the primary quarter of this 12 months, the profitable selloff spelled positive results for Q2.
“Adidas second-quarter revenues benefited from the primary sale of a few of its Yeezy inventory,” the corporate said in its earnings report earlier this month.
Adidas recorded an operating profit of $193 million within the quarter, which it attributed to around $175 million “related to one-off costs, donations and accruals for future donations,” likely related to the Yeezy selloff.