Gap’s Share Price Plummets Following Kanye West’s Threat To “Walk Away”
Gap‘s stock price saw a 6 percent decrease on Monday alone following various statements made by Kanye West suggesting his departure from the partnership between the clothing retailer and his own brand, YEEZY.
More specifically, the statements were made on Sunday during a public event that West attended. Videos released online show the rapper criticizing both adidas and Gap, complaining that he was not on either company’s board. “That has to change today or I walk away,” he said. News journal CNN reached out to the two companies, but adidas declined to comment and Gap has yet to respond.
The news comes following a recent announcement from West and Gap of a 10-year partnership, aimed at creating ”modern, elevated basics for men, women and kids at accessible price points.” Upon announcement, the clothing retailer’s stock price surged by a staggering 42 percent, adding more thn $1 billion USD to its market capitalization. The deal came at a much-needed time for Gap as it saw a 43 percent decrease in sales in the financial quarter ending May 2 despite doubling online sales, as well as skipping rent in April following temporary closures of its stores as a result of the ongoing coronavirus pandemic.
For more on FASHION, follow us on Instagram @fashionpivot | Twitter: @fashionpivott | Facebook: Fashio0npivott|
If you have a story or suggestion, Email: info@fashionpivot.com
Leave your views in the comment box below