Adidas AG plans to end its alliance with Kanye West following a rash of offensive behavior from the rapper and designer that turned a once-thriving shoe brand into a criticism.
According to sources, the German sports company may announce the move on Tuesday. Adidas didn't immediately respond to requests for comment.
Adidas would follow in the footsteps of Gap Inc. and Kering SA's Balenciaga fashion label in severing ties with West, who now goes by Ye.
In recent weeks, the rapper has made controversial statements, including anti-Semitic social media posts, and has moved to cut ties with his corporate partners.
Adidas shares, already under pressure from the scandal, fell as much as 3.2% in Frankfurt trading, reaching their lowest level since April 2016.
The Adidas decision follows weeks of internal deliberations. Over the past decade, the Yeezy line — together with Ye — has accounted for up to 8% of Adidas's total sales.
According to one of the people, the German company believes it owns the intellectual property rights to the collaboration's products and could continue producing them.
Adidas called the partnership "one of the most successful in our industry's history" and will continue co-managing Yeezy products during its review.
In September, the rapper stated that he intends to negotiate with Adidas for a 20% royalty on all shoes he has designed for the company in perpetuity.
In September, the rapper stated that he intends to negotiate with Adidas for a 20% royalty on all shoes he has designed for the company in perpetuity.