Gap’s Shares Fall After Kanye West Threatens To Walk Away From Company
In June this year, rapper turned business mogul Kanye West inked a deal with the struggling retailer brand Gap Inc to produce a new line marrying its American clothing classics with the rapper’s Yeezy designs.
Shortly after the deal was announced, Gap, which has been struggling in recent years witnessed a surge of up to 19% percent in its shares on June 26.
However, a new report by CNN Business has it that Kanye’s recent dramatic statements lately may be hurting more than his public image.
Gap’s stock reportedly fell close to 6 percent on Monday after the 21 times Grammy award-winning rapper threatened to walk away from his deal.
Kanye made the comments during his rally in South Carolina.
West told the crowd that he’s not on the board at Gap or Adidas, before saying that this “has to change today or I walk away.”
“Risk or no risk of losing whatever deal possible, I am not on the board at Adidas,” Kanye said per Fox Business. “I am not on the board at Gap. And that has to change today or I walk away.”
Gap had noted that their 10-year partnership with the 43-year-old brings West’s relationship to Gap “full circle,” saying the billionaire entrepreneur, rapper, designer and most recently gospel singer worked at a Chicago Gap store as a teenager.
Under West’s creative guidance, the new line will include “modern, elevated basics for men, women and kids at accessible price points,” the statement said.
What helped Kanye secure his Gap deal was the work he did with Adidas. His major partnership with Adidas () that began in 2013 earned him raves.
He became the first non-athlete to launch a full collaboration with Nike () for the original Air Yeezy sneakers in 2009, and the brand’s sneakers often go for several hundred dollars.
Through his Yeezy sneakers, Kanye has helped changed the perception of the brand for the current generation. It also helped make him a billionaire.
But during the rally, Kanye insisted that he’s willing to leave behind his money and royalties if called to do so by The Lord.
“Because of [Adidas’] 15 percent royalty, it made me into a billionaire, which could make me, off of this speech alone, at zero tomorrow,” he said. “But when God calls Moses, he has to leave his comfy job working for the Egyptians and free the people.”
Last night, Kanye went on a Twitter rant claiming that wife Kim Kardashian West is trying to lock him up with a doctor.
In a series of tweets Monday night, Kanye revealed his wife’s plan to get him help just 24 hours after a bizarre and at times incoherent campaign rally in South Carolina.