Adidas Ends Kanye West Partnership, Gap Pulls Yeezy Products Over Rapper’s Anti-Semitic Remarks
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Adidas Ends Kanye West Partnership, Gap Pulls Yeezy Products Over Rapper’s Anti-Semitic Remarks

Sportswear company’s move ends lucrative arrangement that produced the popular Yeezy collection of sneakers

By GEORGI KANTCHEV
Wed, Oct 26, 2022 8:49amGrey Clock 4 min

Adidas AG said it would end its partnership with Kanye West and Gap Inc. said it would pull apparel he helped design from its stores, after a string of controversies including a recent anti-Semitic outburst from the musician and fashion-brand owner.

Adidas’s decision, which ends a lucrative arrangement that has produced the popular Yeezy collection of sneakers, comes after weeks of pressure on the German sportswear company from human-rights advocates and after other businesses severed their ties with Mr. West, who goes by Ye.

Gap, which ended its partnership with Mr. West in September but was still selling items it had already produced, said Tuesday that it was removing Yeezy Gap products from its stores and had shut down a website that was still selling hoodies and other merchandise from the partnership.

“Our former partner’s recent remarks and behaviour further underscore why” Gap ended its partnership, the retailer said in a statement.

Mr. West and his representatives didn’t immediately respond to requests for comment. He has publicly complained about Adidas and Gap, accusing the companies of stealing his designs and breaking promises to expand his ventures. He had said that he was key to Adidas’s success. “I can say antisemitic things and Adidas can’t drop me. Now what?” he said in a podcast that aired earlier this month.

In early October, Mr. West appeared at his Yzy fashion show in Paris wearing a “White Lives Matter” shirt, a slogan often used by white supremacist groups, and a week later wrote a tweet that said in part that he planned to go “death con [sic] 3 on Jewish people.”

Film-and-television studio MRC and French fashion house Balenciaga are among companies that have distanced themselves from Mr. West in recent weeks. The talent agency CAA has dropped Mr. West as a client, according to a person familiar with the matter.

On Oct. 6, Adidas put its partnership with Mr. West under review. Days later, Twitter Inc. and Meta Platforms Inc.’s Instagram locked his accounts after he made anti-Semitic posts.

Adidas said Tuesday that Mr. West’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.”

The breakup adds another major headwind for Adidas, which has been struggling to grow in China, the largest apparel and footwear market in the world. Adidas is also in the midst of searching for a new chief executive after the company unexpectedly said in August that its current leader, Kasper Rorsted, will step down next year.

“The termination of the partnership with Kanye West is understandable and necessary. Financially, the termination is a heavy blow,” said Ingo Speich, head of sustainability and corporate governance at German fund manager Deka Investment, which holds 0.7% of Adidas. “It remains to be hoped that no further partnerships will be lost.”

Adidas said it would terminate the partnership immediately, end production of Yeezy branded products and stop all payments to Mr. West and his companies. The decision is expected to have a short-term hit of up to €250 million, equivalent to $247 million, on the company’s net income in 2022, the company said.

Adidas shares fell more than 3% in Frankfurt trading Tuesday. They are down more than 60% this year.

Over the weekend, protesters in Los Angeles held a banner above a major freeway expressing support for Mr. West’s statements. “Kanye is right about the Jews,” it read.

After photos of the incident circulated on social media, a chorus of celebrities condemned anti-Semitism in online posts, including Kim Kardashian, who filed for divorce from Mr. West in 2021.

“Hate speech is never OK or excusable,” she wrote on Twitter on Monday. “I stand together with the Jewish community and call on the terrible violence and hateful rhetoric towards them to come to an immediate end.”

Human-rights campaigners in recent days had publicly criticised Adidas over its partnership with Mr. West. On Tuesday, the Central Council of Jews in Germany called on the company to end its partnership with the artist.

“As a German company, I simply expect from Adidas a clear stance when it comes to anti-Semitism,” the organisation’s president, Dr. Josef Schuster, said on Twitter. “Entrepreneurial interests must not be the priority.”

Addressing Adidas, Jonathan Greenblatt, chief executive of the Anti-Defamation League, tweeted on Monday that “your silence is a danger to Jews.”

Adidas on Tuesday said it “does not tolerate anti-Semitism and any other sort of hate speech.”

Mr. West’s ventures in sneakers date to at least 2006 when he first collaborated with Adidas on a shoe that was never released. A year later the rapper started working with Nike Inc. and eventually released the coveted Nike Air Yeezy II, which included the famed Red Octobers. The Nike partnership ended in 2013.

Items that the artist designed in collaboration with Adidas made their debut in 2015, and the parties entered a long-term partnership the following year.

In the arrangement, Mr. West lends the Yeezy brand to the company in return for royalties of about 15% of the sales of Yeezy products. Adidas designs and manufactures the products, and it owns the designs, according to people familiar with the deal.

The partnership has been a boon for Adidas. The tie-up accounts for as much as 8% of Adidas’s total sales, analysts at UBS said in a report last week.

Without the partnership, the company’s annual sales have grown just 1% on average since 2017 compared with the actual sales growth of 3%, UBS estimated. Adidas has said that its partnership with Yeezy was one of the most successful collaborations in the industry.

But in recent months, Mr. West has criticised Adidas, as well as Gap, on social media. Gap decided to end its relationship with Mr. West last month, saying the company and Mr. West are “not aligned” in how they work together, The Wall Street Journal has reported.

Earlier this month, Adidas said it made repeated attempts to privately resolve disputes with Mr. West.

The breakup with Mr. West piles further pressure on the sporting goods maker, days after it cut its full-year guidance, citing a weaker business environment in China as well as a significant inventory buildup as a result of lower consumer demand in major Western markets. Other factors, such as suspended operations in Russia and the supply-chain problems that have engulfed global business, have contributed to the company’s lacklustre performance lately.

The company said on Thursday that it now expects currency-neutral revenue to grow by a mid-single-digit percentage rate in 2022, down from a mid- to high-single-digit percentage forecast previously.

Corrections & Amplifications
The musician and fashion-brand owner is Kanye West. An earlier version of this article incorrectly called him Kayne West in one instance. (Corrected on Oct. 25)



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An Unforgettable Meal Can Cost $5 at Singapore’s Hawker Centres. Can the Next Generation Save Them?

No trip to Singapore is complete without a meal (or 12) at its hawker centres, where stalls sell multicultural dishes from generations-old recipes. But rising costs and demographic change are threatening the beloved tradition.

By SEBASTIAN MODAK
Fri, Oct 18, 2024 6 min

In Singapore, it’s not unusual for total strangers to ask, “Have you eaten yet?” A greeting akin to “Good morning,” it invariably leads to follow-up questions. What did you eat? Where did you eat it? Was it good? Greeters reserve the right to judge your responses and offer advice, solicited or otherwise, on where you should eat next.

Locals will often joke that gastronomic opinions can make (and break) relationships and that eating is a national pastime. And why wouldn’t it be? In a nexus of colliding cultures—a place where Malays, Indians, Chinese and Europeans have brushed shoulders and shared meals for centuries—the mix of flavours coming out of kitchens in this country is enough to make you believe in world peace.

While Michelin stars spangle Singapore’s restaurant scene , to truly understand the city’s relationship with food, you have to venture to the hawker centres. A core aspect of daily life, hawker centres sprang up in numbers during the 1970s, built by authorities looking to sanitise and formalise the city’s street-food scene. Today, 121 government-run hawker centres feature food stalls that specialise in dishes from the country’s various ethnic groups. In one of the world’s most expensive cities, hawker dishes are shockingly cheap: A full meal can cost as little as $3.

Over the course of many visits to Singapore, I’ve fallen in love with these places—and with the scavenger hunts to find meals I’ll never forget: delicate bowls of laksa noodle soup, where brisk lashes of heat interrupt addictive swirls of umami; impossibly flaky roti prata dipped in curry; the beautiful simplicity of an immaculately roasted duck leg. In a futuristic and at times sterile city, hawker centres throw back to the past and offer a rare glimpse of something human in scale. To an outsider like me, sitting at a table amid the din of the lunch-hour rush can feel like glimpsing the city’s soul through all the concrete and glitz.

So I’ve been alarmed in recent years to hear about the supposed demise of hawker centres. Would-be hawkers have to bid for stalls from the government, and rents are climbing . An upwardly mobile generation doesn’t want to take over from their parents. On a recent trip to Singapore, I enlisted my brother, who lives there, and as we ate our way across the city, we searched for signs of life—and hopefully a peek into what the future holds.

At Amoy Street Food Centre, near the central business district, 32-year-old Kai Jin Thng has done the math. To turn a profit at his stall, Jin’s Noodle , he says, he has to churn out at least 150 $4 bowls of kolo mee , a Malaysian dish featuring savoury pork over a bed of springy noodles, in 120 minutes of lunch service. With his sister as sous-chef, he slings the bowls with frenetic focus.

Thng dropped out of school as a teenager to work in his father’s stall selling wonton mee , a staple noodle dish, and is quick to say no when I ask if he wants his daughter to take over the stall one day.

“The tradition is fading and I believe that in the next 10 or 15 years, it’s only going to get worse,” Thng said. “The new generation prefers to put on their tie and their white collar—nobody really wants to get their hands dirty.”

In 2020, the National Environment Agency , which oversees hawker centres, put the median age of hawkers at 60. When I did encounter younger people like Thng in the trade, I found they persevered out of stubbornness, a desire to innovate on a deep-seated tradition—or some combination of both.

Later that afternoon, looking for a momentary reprieve from Singapore’s crushing humidity, we ducked into Market Street Hawker Centre and bought juice made from fresh calamansi, a small citrus fruit.

Jamilah Beevi, 29, was working the shop with her father, who, at 64, has been a hawker since he was 12. “I originally stepped in out of filial duty,” she said. “But I find it to be really fulfilling work…I see it as a generational shop, so I don’t want to let that die.” When I asked her father when he’d retire, he confidently said he’d hang up his apron next year. “He’s been saying that for many years,” Beevi said, laughing.

More than one Singaporean told me that to truly appreciate what’s at stake in the hawker tradition’s threatened collapse, I’d need to leave the neighbourhoods where most tourists spend their time, and venture to the Heartland, the residential communities outside the central business district. There, hawker centres, often combined with markets, are strategically located near dense housing developments, where they cater to the 77% of Singaporeans who live in government-subsidised apartments.

We ate laksa from a stall at Ghim Moh Market and Food Centre, where families enjoyed their Sunday. At Redhill Food Centre, a similar chorus of chattering voices and clattering cutlery filled the space, as diners lined up for prawn noodles and chicken rice. Near our table, a couple hungrily unwrapped a package of durian, a coveted fruit banned from public transportation and some hotels for its strong aroma. It all seemed like business as usual.

Then we went to Blackgoat . Tucked in a corner of the Jalan Batu housing development, Blackgoat doesn’t look like an average hawker operation. An unusually large staff of six swirled around a stall where Fikri Amin Bin Rohaimi, 24, presided over a fiery grill and a seriously ambitious menu. A veteran of the three-Michelin-star Zén , Rohaimi started selling burgers from his apartment kitchen in 2019, before opening a hawker stall last year. We ordered everything on the menu and enjoyed a feast that would astound had it come out of a fully equipped restaurant kitchen; that it was all made in a 130-square-foot space seemed miraculous.

Mussels swam in a mushroom broth, spiked with Thai basil and chives. Huge, tender tiger prawns were grilled to perfection and smothered in toasted garlic and olive oil. Lamb was coated in a whisper of Sichuan peppercorns; Wagyu beef, in a homemade makrut-lime sauce. Then Ethel Yam, Blackgoat’s pastry chef prepared a date pudding with a mushroom semifreddo and a panna cotta drizzled in chamomile syrup. A group of elderly residents from the nearby towers watched, while sipping tiny glasses of Tiger beer.

Since opening his stall, Rohaimi told me, he’s seen his food referred to as “restaurant-level hawker food,” a categorisation he rejects, feeling it discounts what’s possible at a hawker centre. “If you eat hawker food, you know that it can often be much better than anything at a restaurant.”

He wants to open a restaurant eventually—or, leveraging his in-progress biomedical engineering degree, a food lab. But he sees the modern hawker centre not just as a steppingstone, but a place to experiment. “Because you only have to manage so many things, unlike at a restaurant, a hawker stall right now gives us a kind of limitlessness to try new things,” he said.

Using high-grade Australian beef and employing a whole staff, Rohaimi must charge more than typical hawker stalls, though his food, around $12 per 100 grams of steak, still costs far less than high-end restaurant fare. He’s found that people will pay for quality, he says, even if he first has to convince them to try the food.

At Yishun Park Hawker Centre (now temporarily closed for renovations), Nurl Asyraffie, 33, has encountered a similar dynamic since he started Kerabu by Arang , a stall specialising in “modern Malay food.” The day we came, he was selling ayam percik , a grilled chicken leg smothered in a bewitching turmeric-based marinade. As we ate, a hawker from another stall came over to inquire how much we’d paid. When we said around $10 a plate, she looked skeptical: “At least it’s a lot of food.”

Asyraffie, who opened the stall after a spell in private dining and at big-name restaurants in the region, says he’s used to dubious reactions. “I think the way you get people’s trust is you need to deliver,” he said. “Singapore is a melting pot; we’re used to trying new things, and we will pay for food we think is worth it.” He says a lot of the same older “uncles” who gawked at his prices, are now regulars. “New hawkers like me can fill a gap in the market, slightly higher than your chicken rice, but lower than a restaurant.”

But economics is only half the battle for a new generation of hawkers, says Seng Wun Song, a 64-year-old, semiretired economist who delves into the inner workings of Singapore’s food-and-beverage industry as a hobby. He thinks locals and tourists who come to hawker centers to look for “authentic” Singaporean food need to rethink what that amorphous catchall word really means. What people consider “heritage food,” he explains, is a mix of Malay, Chinese, Indian and European dishes that emerged from the country’s founding. “But Singapore is a trading hub where people come and go, and heritage moves and changes. Hawker food isn’t dying; it’s evolving so that it doesn’t die.”

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