How To Fix Adidas 1.2bn Problem From Kanye Exit
Just read an article that says Adidas has 1.2bn of unsold Yeezy inventory it's sitting on. Now, I imagine it could move that on the low to 3rd party retailers and other sellers while losing a few pennies off of the dollar, but 1.2bn worth is an unfeasible amount. Further, who knows if the demand is there. Also flooding the market only shoots themselves in the foot on the next marginal loss.
I remember reading the "break up" pill they effectively swallowed by ending the partnership with Kanye, and even a day one MBA student could tell you they wouldn't be able to stomach that easily down the line. From an investor perspective, they should have never broken up with Kanye or at least put out an agreement that said we're terminating business following the close of a 2 year contract or some maneuver to unload the inventory. Now, they're are quite literally holding the bag. If you were running Adidas, how would you handle the potential 750mm loss (the first in 30 years).
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