Adidas made $210 million less than expected on Beyonce’s Ivy Park brand in 2022, according to reports last month.
Since 2018, they had been paying Bey $20 million per year to license her brand.
They will not do so in the future.
Adidas and Beyoncé announced today that they are discontinuing their partnership owing to “creative differences.”
Bey framed it further as an opportunity to recover her brand, forge her own path, and maintain creative independence.
While losing a few hundred million dollars on Beyonce is bad, it’s not as bad as Adidas losing a billion dollars on Kanye and his big mouth.
According to a source close to The Hollywood Reporter, “significant creative disputes between Ivy Park and Adidas” have resulted in the end of their five-year working relationship.
According to the insider, “Beyoncé is delighted to recover her brand, set her own course, and keep creative independence.”
Ivy Park was founded in 2016 by Beyoncé in a 50-50 partnership with former Arcadia Group CEO Sir Phillip Green. The collaboration terminated two years later, with the vocalist of Sweet Dreams acquiring full ownership of the brand.
Jay-Z, the co-founder of Roc Nation and a rapper, may help Beyoncé with her clothing dilemma. Puma’s creative director is currently 53 years old.
In his first news conference as Adidas CEO, Bjorn Gulden spoke candidly about the need to “kickstart” the brand, particularly after the breakup with Ye, formerly known as Kanye West, last October.
Adidas’ famed Yeezy series was a money-spinner for Ye, but the partnership’s dissolution has left a gaping hole in its coffers after registering net losses of $540 million last year.
The corporation might lose up to $1 billion in income if the Yeezy products cannot be repurposed, with Adidas currently debating what to do with the inventory.