Adidas has announced that it will sell a portion of the products and Yeezy sneakers from its past collaboration with Kanye West and use the revenues to support charitable causes.

Due to West’s antisemitic remarks from late last year, the German sportswear company severed connections with him, which has put them in a difficult situation with the Yeezy stock.

After their sale was postponed, milliоns of Yeezy brand shoes—whose retail worth was estimated to be €1.2 billiоn (£1.05 billiоn)—were placed in storage. Their resale value skyrocketed after manufacturing ceased, with some styles more than tripling in price.

The corporation suffered its first yearly loss in over thirty years as a result of the controversy surrounding the musician, now known as Ye.

Bjoern Gulden, the CEO of Adidas, stated that burning the product “would not be a solution” and that the company is attempting to sell some of it “over time.” He also mentioned that the earnings will be sent to overseas organizations that West had hurt with his remarks.

Adidas was one of several businesses that severed their relationship with the 45-year-old Ye after he made antisemitic statements on social media. Adidas faced criticism for its lack of response to the accusations sooner.

The firm has had great success with their Yeezy sneakers, which are highly sought after and sometimes sell for hundreds of pounds on the resale market.

During the company’s annual shareholder meeting, Mr. Gulden stated that the timing and specifics of the intended sale were still to be worked out.

According to him, the business chose not to donate the sneakers in order to prevent them from entering the market through an indirect route.

Adidas’s stock increased by 2% after the meeting.

The corporation may be able to reduce a $700 million (£559 million) deficit this year by selling part of the shares, but it is unclear how much will be sold and how much of the earnings would go to charity.

According to media sources, Ye will be entitled to already agreed-upon commissions, which are 15% of turnover, if the products are sold.

Despite the rapper’s challenges, Mr. Gulden praised Adidas’s long-term partnership with him, stating that “he is perhaps the most creative mind in our industry.”