Gap Shares Tumble After Kanye West Threatens To Pull Yeezy Deal

Words by Luhar Singh

Less than a month after clothing retailer Gap and musician Kanye West announced a 10-year Yeezy deal, things are looking shaky. 

At a public event held on Sunday, Kanye West threatened to walk away from the deal, which sent Gap’s shares tumbling by 6 percent on Monday. According to videos taken at the event, West also said that he may back out of his deal with Adidas, which is yet another retailer that partnered with West’s Yeezy brand, CNN reported.

West noted that he wasn’t on the board of either of the companies, which was a dealbreaker for him.

“That has to change today or I walk away.”

Adidas reportedly declined to comment on the video, while Gap did not return CNN’s request for comment.

As part of the 10-year deal, West and Gap are to work on a new Yeezy Gap offering under West’s creative direction. The new line will focus on delivering modern, elevated basics for men, women, and kids at accessible price points, with West, also extending his vision to in-store concepts as well as digital channels.

Under the terms of the deal, Yeezy will receive royalties and potential equity related to sales achievements.

Gap’s Shares Tumble After Kanye West Threatens To Pull Yeezy Deal
Source: David Lezcano

The announcement of the Yeezy Gap collaboration gave the struggling retailer a much-needed lifeline. The company’s stock soared by nearly 19 percent in late June. Since then, however, the company has only managed to retain half of those gains.

Gap reportedly didn’t pay rent in the month of April and its sales dipped by 43 percent in the quarter ending May 2. However, it’s worth noting that the company’s online sales in May were double than sales made during the same period last year.

If Gap’s deal with West stays put, then it has the potential of helping the company pull out of its financial troubles. West’s Yeezy brand is now reportedly worth over one billion.

West has had a long but, at times, complicated relationship with Gap, according to Retail Dive. He worked as a store associate at Gap at the age of 15 and credits the company for helping him find his love for apparel. 

“It’s funny that I worked at the Gap in high school because in my past 15 years it seems like that’s the place I stood in my creative path — to be the gap, the bridge,” he wrote in a 2015 article for the Paper. 

In February 2004, West made his debut as a rapper with his album called “The College Dropout.” West’s Spaceship track speaks to his time working at the Gap. Part of the lyrics go:

Gap's Shares Tumble After Kanye West Threatens To Pull Yeezy Deal

Spaceship

Let’s go back, back to the Gap, 

Look at my check, wasn’t no scratch. 

So if I stole wasn’t my fault. 

Yeah, I stole, never got caught. 

They take me to the back and pat me. 

Askin’ me about some khakis.

But, let some Black people walk in, I bet they show off their token Blackie. 

Oh, now they love Kanye, let’s put him all in the front of the store.”

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