October 2, 2022

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Kanye West Ye Yeezy terminated deal with Gap due to alleged contract violations

Kanye West Ye Yeezy terminated deal with Gap due to alleged contract violations

Kanye West and her daughter North West attend the ‘Yeezy Season 8’ show as part of Paris Fashion Week Women’s Fashion Fall/Winter 2020/2021 on March 02, 2020 in Paris, France.

Arnold Jerokee | Getty Images

Kanye West, who goes by Ye’s side, terminates the contract between his company Yeezy and GAP Company. , according to a letter shared by his lawyer.

The move comes after Gap failed to meet its corporate agreement commitments, including distributing Yeezy products in its stores by the second half of 2021 and creating dedicated Yeezy Gap stores, according to the letter shared with CNBC.

“Yeezy Gap notified of her concerns in August and gave the company a contractual 30-day deadline to remedy her violations,” Yeezy’s attorney, Nicholas Gravante, told CNBC. He said Gap has not taken any action on these concerns.

CNBC has reached out to Gap for comment. Gravante said the termination letter was sent to the company on Thursday.

Gravante said Gap’s failure to comply with the agreement was costly and that “Ye will now act immediately to make up for lost time by opening Yeezy retail stores.”

Announced in June 2020The partnership between Gap and Yeezy was scheduled to run until 2026. Yeezy, owned solely by Ye, will receive equity and equity based on sales. Gap has also agreed to distribute 8.5 million shares to Yeezy where certain sales targets have been met.

The #1 product in the Yeezy Gap line, a blue bomber jacket, Sold out within hours after launching online in June 2021. Gap later made headlines selling Yeezy products in its Times Square store, but the termination letter said those products were the result of a separate contract between Yeezy, Gap and Balenciaga.

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After its release, Wells Fargo The partnership is expected to generate $1 billion in sales in its first year. But Gap has been struggling with declining sales and in August cut its financial forecast. The company admitted missteps with its Old Navy series, and it was Looking for a new leader Since leaving its CEO in July.

In recent weeks, Yi has publicly expressed his complaints with his business partners in recent weeks. The rapper, producer, and designer sparked his quarrels with Adidas in a slew of Instagram posts attacking the company’s board of directors, and in Interview with Bloomberg He said it was time for me to go alone.

“I made money from companies. Companies made money for me. We created ideas that would change clothes forever. Like the sweater, foam runner, slides that changed the shoe industry. Now it’s time for the new industry to come to life. There are no longer companies standing between me and the public.”

As a teenager, Yi worked at a Gap store and noted the time he spent there with the lyrics to “Spaceship” on his 2004 album College Dropout. West and Gap have reportedly been in touch about a potential deal since 2015.

Gap shares were down 4% in pre-market trading.