Adidas will sell some of the merchandise from its defunct Yeezy partnership with rapper Kanye West and donate some of the proceeds to international organizations, CEO Bjorn Gulden said, as quoted by Reuters.

The German sportswear giant has been hit hard by Yeezy stock after it cut ties with West late last year over his anti-Semitic comments, a dispute that has weighed on its stock and financial results.

Millions of Yeezy shoes with a retail value of 1.2 billion euros ($1.3 billion) are being stored after they were suspended.

Their value on the resale market has skyrocketed since Adidas discontinued them, with some models more than doubling in price.

Addressing investors in the southern German city of Fürth after the crisis led to the company’s first annual loss in 31 years, Gulden said it was not yet clear when and how the planned sale would take place.

“What we are trying to do now, over time, is to sell some of this product … burning the product will not be the solution,” he said, adding that the proceeds would be given to international organizations in the West, which changed its name to Ye in 2021, he hurt them with his comments.

Goulden said the company decided not to donate the sneakers to prevent them from re-entering the market in a roundabout way.

“It’s a smart and responsible move,” said Ed Stoner, a sportswear consultant who used to work for Adidas, adding that “not only does it preserve the integrity of the brand, but it also avoids a sustainability crisis.”

By selling some of the shares, the company could minimize a loss of $700 million this year, but it is unclear how many shares will be sold and what proportion of the proceeds will be handed over.

If the product is sold, Ye will be entitled to pre-arranged commissions – 15 percent of the turnover, the media reports.

Adidas declined to comment on the matter.

Goulden defended adidas’ long-standing partnership with the rapper, saying that “as difficult as it is, he’s probably the most creative mind in our industry.”

Gulden recently said he envied Adidas for working with Ye when he was still CEO of Puma.