Adidas Could ‘Literally Burn’ $500M On Unsold Yeezy Clothing: Report

Adidas could be forced to burn up to $500 million worth of Yeezy sneakers after hastily breaking up with rapper Kanye West last year over anti-Semitic remarks.

The German sportswear giant is left with a few good options for its Yeezy brand, a once popular and lucrative segment of its business that was irrevocably tainted during West’s resounding collapse.

If Adidas can’t find buyers for the sneaker, one possible solution to the dilemma would be to “literally burn the shoe,” according to the Washington Post, citing industry experts. The remaining inventory of Adidas Yeezy is estimated at between $300 million and $500 million.

Adidas won’t be the first company to burn their product. Several retailers, including Burberry, Coach, Victoria’s Secret, Louis Vuitton and Nike, have decided to destroy unsold inventory to get rid of excess supply.

Experts warned that this practice, while relatively common, would be the “worst case outcome” as it would generate no revenue and could generate backlash over waste and environmental costs.

Analysts told the Washington Post that Adidas may rebrand its Yeezy sneakers and try to sell them at a discount. Before West’s anti-Semitic tirades, sneakers sold for about $600 each.

According to Wedbush analyst Tom Nikich, any attempt to resell “Yeezy zombies” under a new label comes with some risks.

“It could backfire on them in terms of PR,” Nikich told the publication. “It will still look like they’re cashing in on collaborating with someone who made blatant anti-Semitic statements.”

Other possible solutions include liquidating remaining Yeezy sneakers at discount stores or donating them.

The Post has reached out to Adidas for comment.

Adidas warned investors last month that it could lose nearly $1.3 billion in revenue due to unfulfilled Yeezy inventory.

The company has warned that its operating profit could be cut by more than $500 million this year due to the Yeezy fiasco.

“If the company irrevocably decides not to repurpose any of Yeezy’s existing products in the future, this will result in a write-off of existing Yeezy inventory,” the company says on its website.

West, who changed his name to Ye, dropped out of the Forbes billionaire list after he lost his Adidas deal and various other partnerships due to the scandal.