Adidas has ended its partnership with Kanye West, describing the US rapper’s recent comments as “unacceptable, hateful and dangerous”.
The German sportswear company has faced pressure to cut ties with West, who has legally changed his name to Ye, over his anti-Semitic remarks on social media.
West was recently restricted from posting on Twitter and Instagram over posts the social networks said violated their policies.
Adidas said it was ending production of its Yeezy branded products, produced in collaboration with West, with “immediate effect”.
Yeezy’s trainers reportedly earned nearly $1.7bn (£1.5bn) in annual revenue in 2020.
In a statement, the company said: “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.”
Adidas said it expected the decision to have a “short-term negative impact of up to 250 million euro (around £217.5m) on the company’s net income in 2022 given the high seasonality of the fourth quarter”.
The company added that it remains “the sole owner of all design rights to existing products as well as previous and new colourways under the partnership”.
It comes after a completed documentary about West was shelved and he was dropped by talent agency CAA over his remarks.
The Balenciaga fashion house also cut ties with Ye last week, according to reports.
West was criticised earlier this month for wearing a “White Lives Matter” T-shirt to the showing of his latest collection at Paris Fashion Week.
In the last few days, his ex-wife Kim Kardashian and members of her family have called for an end to the “terrible violence and hateful rhetoric” towards the Jewish community.
It comes after demonstrators in Los Angeles unfurled banners on an overpass on Sunday, praising West following his antisemitic public statements.
West is in the process of buying alternative messaging platform Parler.
The site has styled itself as an unbiased platform and has become popular with those banned from Twitter, also hosting prominent American conservative voices.