In October 2022, Adidas Group faced a significant public relations crisis involving its long-standing partnership with Kanye West, by then legally known as Ye. After terminating the partnership, Adidas was left with a substantial inventory of Ye-designed Yeezy sneakers and uncertainty about how to manage it. At the same time, Adidas was dealing with a shareholder lawsuit, with investors claiming the company failed to adequately disclose the risks associated with its Yeezy business.Adidas must now consider its options in dealing with the Yeezy inventory, the financial consequences for reporting how it dealt with the inventory, and any obligations it has considering the pending shareholder lawsuit.
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