KANYE West risks losing his $1billion ‘Yeezy’ deal with Gap as the clothing giant’s share value plummeted after the wannabe president’s public meltdown.
Gap’s stock plunged by about 7.4 per cent on Monday after the ranting star threatened at his first presidential rally to “walk away” unless he was handed a board position.
At the end of June, the 43-year-old Grammy-winning singer, entrepreneur and fashion designer announced he and Gap had signed a ten-year deal.
This was to create a line of Yeezy apparel, which resulted in soaring shares.
Financial details were not disclosed, but Gap said Yeezy would receive royalties and potential equity based on sales results.
Yeezy said the brand was valued at $2.9 billion.
The New York Times reported at the time that “at the five-year point, Gap is hoping that Yeezy Gap will be generating $1billion in annual sales.”
But the business tie-up was apparently put in jeopardy at Kanye’s bizarre rally in North Charleston, South Carolina, on Sunday July 19.
Wearing a protective vest emblazoned with ‘security’ during the event and with “2020” shaved into his head, Kanye told the crowd he was prepared to leave both Gap and Adidas.
The sportswear giant produces his label’s sought-after sneakers, writes the New York Post.
He ranted: “In risk or no risk of losing whatever deal possible, I am not on the board at Adidas.
“I am not on the board at Gap.
“And that has to change today, or I walk away.”
The next day, Gap shares dipped “as much as 7.4 per cent” in response to his threat to split from the company, said the NYP.
So far neither brand have commented publicly on Kanye’s bizarre ultimatum, reported news.com.au.
Aimed at young shoppers, the Yeezy-Gap line will offer items such as hoodies, basics, T-shirts and joggers.
It is expected to appear in Gap stores and on Gap.com in 2021, both parties said last month.
Kanye confirmed he would keep sole ownership of the Yeezy brand.
German sportswear company Adidas also partners with the rapper, selling Yeezy footwear designed by him.
Days after announcing his business partnership with Gap, Kanye suddenly declared that he was running a serious campaign for the White House.
He told Forbes it was under the banner of a self-styled Birthday Party committed to a presidency modeled after the fictional nation Wakanda in the film “Black Panther”.
Kanye, who has said he has bipolar disorder, also announced his candidacy for the November 3 election in a brief tweet on July 5.
Then, on July 9 Sharon Osbourne slammed Kanye as “embarrassing” after the billionaire rapper’s fashion brand received a loan from the US government designed to avoid mass layoffs amid the pandemic.
His Yeezy company was approved for a loan between $2-5million (about £1.6m-£4m), which helped retain 106 jobs, official figures showed.
She said: “When you are so wealthy, your family, everybody in your family is so wealthy, why are you doing this? I think he should give the money back.”
Kanye was named a billionaire by Forbes magazine in April, largely thanks to his stake in the Yeezy trainer line.
In his first rally for his last-minute presidential campaign, the star ranted against abortion and porn, argued policy with attendees and at one point broke down in tears.
A former staunch supporter of President Donald Trump, Kanye now wants to take over the White House alonside his on-and-off pal Jay-Z as his running mate, according to a radio interview at the weekend.
He delivered rambling remarks during his first public rally at Charleston, South Carolina, where he denounced abortion, and mocked historical figure Harriet Tubman.
Kanye said the Underground Railroad conductor “never actually freed the slaves, she just had them work for other white people” – comments that drew shouts of opposition from some in the crowd.
He referred to the Bible and Christian teachings multiple times, and broke down in tears at one point while describing how he was nearly aborted by his parents.
“The only thing that can free us is by obeying the rules that were given to us for a promised land,” he said.
“Abortion should be legal because guess what? The law is not by God anyway, so what is legality?”
Kanye also said that while he believes it should be legal, financial incentives to help struggling mothers could be a way to discourage the practice.
“Everybody that has a baby gets a million dollars,” he said as an example.
