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The £700 million cost of Addidas Split with Kanye West

Adidas, the German multinational sportswear company, has recently announced a £700 million loss in its profits following the termination of its partnership with American rapper and fashion designer, Kanye West. The announcement has sent shockwaves through the industry and raised questions about the future of Adidas' strategy and collaborations with high-profile celebrities.

The Adidas-West partnership, which started in 2015, was seen as a match made in heaven. West was at the peak of his powers, with a rapidly growing fashion empire, while Adidas was looking to tap into the lucrative streetwear market. The partnership resulted in the creation of the Yeezy brand, which quickly gained a cult following among fashion-conscious consumers.

Over the years, Yeezy products sold out almost as soon as they hit the shelves, and the brand was seen as a key driver of Adidas' growth and profitability.

However, in recent months, the relationship between Adidas and West has become strained. West has been making headlines for his controversial statements, and his antics have put Adidas in an awkward position. The straw that broke the camel's back was West's announcement that he was running for President of the United States. This led Adidas to make the difficult decision to terminate the partnership, citing West's erratic behavior as the primary reason.

The loss of the Yeezy brand has had a profound impact on Adidas' financial results. The company has reported a £700 million loss in its profits, which is a significant setback for a company that has been experiencing steady growth in recent years. The loss is equivalent to about 10% of Adidas' total profits for the past year and is expected to have a significant impact on the company's stock price.

The loss of the Yeezy brand has also raised questions about Adidas' strategy for collaborating with high-profile celebrities. The company has had a long history of partnerships with famous athletes and celebrities, but the Yeezy partnership was seen as a particularly high-risk, high-reward collaboration.

While the partnership was initially successful, the recent events have shown that working with a controversial figure like West can have serious consequences for a company's reputation and financial performance.

Many in the industry are now wondering if Adidas will reconsider its approach to celebrity collaborations. Some analysts believe that the company will continue to work with celebrities, but will be more cautious in its choice of partners. Others argue that Adidas should focus more on developing its own brands and less on partnering with celebrities.

Regardless of what the future holds for Adidas' strategy, the loss of the Yeezy brand is a clear sign that celebrity collaborations are not without risk. Companies that are considering partnerships with high-profile figures need to weigh the potential benefits against the potential risks, and be prepared to act quickly if things start to go wrong.

In conclusion, the loss of the £700 million for Adidas due to its split with Kanye West is a wake-up call for the industry. The partnership between Adidas and West was seen as a perfect match, but it has now become a cautionary tale about the potential risks of celebrity collaborations. Companies that are considering working with famous figures need to carefully consider the potential benefits and risks, and be prepared to act quickly if things start to go wrong.

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