Adidas is holding onto $1.3 billion of unsold inventory of Yeezy shoes after breaking ties with the rapper in October. Kanye West due to his anti-Semitic and other offensive comments on social media and in interviews.

Adidas is “getting closer and closer to making a decision on what to do with the sneakers that are in stock and the options are narrowing down,” new CEO Bjorn Gulden said in a conference call on Friday.

The sporting goods company posted a $24 million loss from continuing operations, reporting an operating profit of $60 million and a lower gross margin of 44.8% due to supply chain costs and increased rebates.

A rift with Yeezy designer Kanye West could result in an operating loss of up to $500 million this year if he is unable to sell the line.

Ye has been working with Adidas since 2013 to create Yeezy shoes. In fact, despite their turbulent relationship, Ye said, “I can make anti-Semitic comments and Adidas can’t dump me”, considering himself unscathed since Yeezy sales accounted for 4% to 8% of Adidas’ total sales.

And yet, after comments on social media, he was cut off from several sources of income, after Gap ended its partnership, JP Morgan dropped him as a client, and French fashion house Balenciaga ended the partnership just a few weeks after as he appeared on his show. at Paris Fashion Week. In addition, the production company MRC announced that they would not be releasing the already finished documentary about Ye, and the modeling agency CAA fired him after years of working with him.