Kanye West End’s partnership with Gap

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Kanye West, who legally changed his name to Ye, ended his partnership with Gap on Thursday.


Rich Fury | Getty Images

In 2020, the duo announced a proposed 10-year deal for Ye to collaborate with the brand in clothing. A 2021 Wells Fargo analysis found the partnership could bring the brand $990 million in annual sales. per CNBC.

Corresponding the Wall Street Journal, who first reported on the dissolution of the partnership, Ye’s attorney sent a letter of termination to Gap on Thursday. This followed weeks of Ye posting about Gap and another corporate partner, Adidas, in now-deleted posts on Instagram.

The news didn’t sit well with Gap’s shareholders. Shares of the company fell 3.9% Thursday morning.

Why Yes Deal with Gap failed

Interim Gap CEO Mark Breitbard cited operational differences in a memo to employees Thursday.

“While we share the vision of bringing quality, trend-led, and useful design to all people through unique Omni experiences with Yeezy Gap, the way we work together to achieve that vision is not aligned,” he said in the memo. per CNBC.

you were more open “I’m sorry, I won’t argue with people who are brokers than me for money,” he told CNBC. He’s also hinted on Instagram that he wants more control over his Yeezy products in general.

On Monday, Ye released a contract of sorts with Gap and Adidas (which is now being deleted, as is its habit), which read: “I think the war isn’t over yet.”

The New York Post the same day reported Ye would use Alex Spiro as his attorney to pull out of his deal with Gap – the same one who is part of the effort to get Elon Musk out of his merger agreement with Twitter.

Spiro’s attorney is a partner at Quinn Emanuel Urquhart & Sullivan and did not immediately respond to an emailed request for comment.

Back in 2020, when the deal was finalized, it was agreed that Gap would sell a full line of Yeezy Gap apparel in stores and online within the first six months of 2021 New York Times.

The first product that came out of the collaboration was a blue down jacket – in June 2021. The second was a hoodie, which launched in September 2021 and, according to the company, generated the most online sales in one day in Gap.com’s history. Insiders reported.

Earlier this year, a collaboration between Ye, Gap and luxury fashion house Balenciaga made headlines for being displayed in giant garbage bags in stores.

Yes’s attorney told Gap that he was ending the partnership because the company failed to bring certain products to Gap brick-and-mortar locations or build Yeezy-aligned stores. Added CBS News.

What each entity has to lose

Ye was estimated to be the richest black man in America last year. But a sizable chunk of his fortune is tied to partnerships with Gap and Adidas, CBS noted. He has also publicly criticized Adidas.

Gap has its own problems. The stock is down 62% from the same period last year. The partnership with Ye should give the ailing retailer a new boost NYT.

At the end of the day, maybe it was just a bad game. Ye is someone who likes to “shake things up,” while Gap doesn’t, GlobalData Retail chief executive Neil Saunders told CBS. “In some ways, Kanye was just too extreme for Gap.”

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