The Yeezy nightmare seems to be far from over for Adidas. According to Bloomberg, a federal judge in Manhattan denied Adidas’ request for an emergency order to refreeze $75 million that Kanye West would have been entitled to receive for marketing the Yeezy brand. The payment freeze was originally imposed after the partnership agreement between the two parties was terminated due to West’s antisemitic remarks.
The arguments put forward by the German company did not convince the court and were nothing more than mere “tabloid” speculation, Bloomberg reported. The court also considered that West did not have the opportunity to defend himself in the initial appeal. It also did not believe that Adidas had demonstrated that it would suffer “irreparable harm” if it had to pay the $75 million. Taking a closer look at the ruling, Adidas could still obtain a more conventional injunction to reinstate the freezing of the assets in the coming days, with this latest ruling merely denying an emergency motion.
The split with West caused a €600 million revenue hole for Adidas in the last quarter of 2022. In addition, the company’s inventories rose significantly as its stock of Yeezy products piled up. Adidas has projected an operating loss of €700 million for this fiscal year, of which €500 million is due to the termination of the contract. The German company has since decided to sell some of its Yeezy inventory. The company stated it would donate part of the proceeds to organizations combating discrimination and hate, including racism and anti-Semitism. In the meantime, West has filed an application for a YZY sock shoes trademark.
