After weeks of speculation, it has been confirmed that Adidas and Beyoncé’s have parted ways, according to an insider close to the situation who spoke with The Hollywood Reporter.
This sad news comes after long-standing rumors that things had not been going well with her Ivy Park clothing line, which was a collaborative effort between the two industry giants.
Despite the high expectations for the brand set by Adidas, it seems that Ivy Park failed to deliver on the financial front, leading to the dissolution of the partnership.
The deal between Adidas and Beyoncé reportedly no longer made financial sense, at least for the corporation.
Ivy Park was projected to reach only $40 million in sales by the end of 2022, according to Billboard, which is a significant drop from the previous year’s sales of $93 million.
While Adidas was poised to lose at least $10 million in 2022 due to the underwhelming performance of the brand, Beyoncé was still set to receive her standard compensation of $20 million, which was in her contract from the outset.
When Adidas initially signed the deal with Beyoncé, the company had clearly hoped that Ivy Park would be as successful as Kanye West’s Yeezy brand, which brought in billions for both Adidas and West. However, Ivy Park consistently underperformed, leading to creative differences between the two entities.
Ivy Park was launched in 2016 as a joint venture with Sir Philip Green of Topshop. That partnership ended in 2018, and Beyoncé and her company Parkwood Entertainment took full ownership of Ivy Park. She then entered a new creative partnership with Adidas in 2018, relaunching the Ivy Park activewear line and designing new footwear and apparel for the conglomerate.
The first Ivy Park/Adidas collection launched in April 2019, and Beyoncé has since released several more collections, each generating a significant amount of buzz. Sadly, despite all the hype, it seems that sales figures for the clothing lines simply weren’t impressive enough to keep the collaboration going.
The split between Adidas and Beyoncé is a significant development within the fashion and music industries. Both parties are industry giants, and their partnership was highly anticipated…even if it wasn’t selling as some may have expected it to.
Just because Adidas will no longer be manufacturing Ivy Park, that doesn’t necessarily mean the brand will disappear…though its future is uncertain. At least one report claims that Beyoncé is apparently now eager to regain control of the brand she built, which has been a point of friction throughout the Adidas partnership.
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