- Gap & Yeezy have signed a 10-year deal.
- The retail giant will be producing hoodies, basics, T-Shirts, and more for Kanye’s brand.
- The sale of the products is expected to start in 2021.
- Kanye West still keeps the sole ownership.
- Yeezy will earn revenue in royalties and potential equity.
- Gap shares soared by 42% as a result of this deal.
Your favorite Yeezy apparel will now be made by Gap, the company allegedly still sponsoring a lot of factories in Asia with child labor. Isn’t that fun?
Okay, jabs aside, Kanye announced the collaboration via twitter a few hours ago and the world has been going bezerk since. Gap shares have already rocketed by 42% while the corporates try to make the most money out of this deal. Don’t get us wrong, the deal is a great step forward for Yeezy fans. This means more exclusive line ups, cheaper prices, and more sales in general. It’s just that Gap has not had the best record for manufacturing practices when it comes to producing apparel. Check out the report below.
Yeezy Gap deal; Does this mean Gap owns Yeezy?
Controversies aside, the deal is supposedly a big one and financial details have not been disclosed. Kanye still owns exclusive rights to Yeezy and this deal seems like an outsource to GAP due to its nature. Instead of making revenue from sales, Yeezy will be receiving royalties. A Gap spokesperson also disclosed that potential equity could also be involved depending on the sales figure at the end of 2021.
Here is what Gap had to say about the Yeezy Gap deal…
We are excited to welcome Kanye back to the Gap family, a creative visionary, building on the aesthetic and success of his Yeezy brand.Mark Breitbard (Gap brand global head)
This statement is a result of Kanye’s previous association with the brand. The rapper worked in a Gap store in Chicago when he was just a teen. A spokesperson further added..
This is an example of leveraging the brand power that Gap has and thinking in a new way about how we can introduce the brand to new customers, new audiencesGap Spokesperson
How has Gap been doing in 2020?
Not so good, the company has over 2800 stores in North America alone yet had to withdraw its full-year targets for 2020. Gap has also suspended its dividend and furloughed employees. This has resulted in its stocks falling by over 40% this year! So is the new gain by 42% by acquiring Yeezy for the next 10 years a calculated move? You be the judge of that.
Want more? Check out the story so far with Justin Bieber and his alleged sexual misconduct with underage fans!