It is possible that Adidas may have to dispose of Yeezy sneakers worth up to USD $500 million (AUD $759m) by incineration.
If the once-popular streetwear sneakers cannot be sold, the multinational footwear corporation faces a considerable financial loss.
The Washington Post has reported that the CEO Bjørn Gulden hinted this month that the corporation might choose not to vend its Yeezy stock, just a few months after terminating its collaboration with Kanye West.
Experts approximate that the complete collection of Yeezy sneakers is valued between USD $300 million to $500 million (AUD $455m to $911m).
The previous month, the German apparel corporation stated that it was still considering how to rename the shoe.
Regardless of the outcome, the consequences for the enterprise will be significant.
In a statement, the company said: "Adidas today published its financial guidance for 2023. While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock."
"This would lower revenues by around €1.2 billion (USD $1.28 billion) and operating profit by around €500 million (USD $534 million) this year."
"Against this background, Adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023."
"The company's underlying operating profit is projected to be around the break-even level."
They further mentioned that failure to make a decision would lead to the cancellation of the current Yeezy inventory.
Prepare your campfires and s'mores because, as per The Washington Post, one of the possibilities for disposing of the remaining Yeezy stock is to incinerate them.
Nonetheless, the CEO expressed optimism that the corporation could regain profitability by revamping its branding.
He added: "We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again. But we need some time."
In October, the corporation formally terminated its association with the controversial rapper following his anti-Semitic outburst, which included a tweet declaring his intention to go "death con 3 on JEWISH PEOPLE."
Adidas issued a statement that read: "Adidas does not tolerate antisemitism and any other sort of hate speech."
"Ye's recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company's values of diversity and inclusion, mutual respect and fairness."
"After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately, end production of Yeezy branded products and stop all payments to Ye and his companies."
"Adidas will stop the Adidas Yeezy business with immediate effect."