The letter that was sent to Gap Inc. by Kanye West’s attorneys on Thursday (September 15) informed the clothing retailer that the rapper and fashion designer was terminating his partnership with the company because it had failed to meet its obligations under the contract. The letter was sent on the same day.
According to the letter, which was accessed by Reuters, Gap violated the terms of its agreement with West by failing to build specialized stores for the Yeezy Gap brand and by not selling products with the Yeezy Gap name in its traditional retail locations.
The letter indicated that the business may continue to sell existing Yeezy Gap equities until the end of the sell-off period. Thursday’s trading session ended with a loss of 3.6% for shares of the Banana Republic parent company.
The clothing retailer Gap refuses to comment on the issue.
In 2020, West, also known as Ye, struck a 10-year partnership with Gap to design a range of clothing that will be sold under the brand name Yeezy Gap. In June of 2021, when the collection was originally introduced, the blue puffer jacket that was the first item sold out in only a few short hours.
“Kanye was forced to pull out of their agreement with Gap since he had no other choice… Immediately following this, Ye will move forward to open Yeezy retail stores in an effort to make up for lost time,” According to West’s attorney, Nicholas Gravante Jr.
However, Gap Brand President and Chief Executive Mark Breitbard stated in an internal statement that the firm would end its cooperation with Kanye because the parties were not united on how to work together to fulfill their own visions. Reuters was able to obtain a copy of this memo.
Recent events have placed a significant strain on the relationship between West and Gap. Earlier in the month, West made a threatening statement regarding his future involvement with the firm.
According to Neil Saunders, managing director of GlobalData, “Kanye’s decision…will come as a shock to the brand,” which had put its hopes on Kanye’s magic to help reinvigorate interest in its struggling business.
Inflation and stale trends at its Old Navy brand are being blamed for the difficulties that Gap has been having in maintaining its profit margins and attracting new customers.