Adidas has made the decision to sell some of the trainers and other products it created in collaboration with rapper Kanye West, also known as Ye, and donate a portion of the proceeds to charity.

The German sportswear giant severed ties with the celebrity last year after he made anti-Semitic remarks, resulting in a loss of millions in sales and contributing to the company’s first annual loss in over 30 years.

The collaboration between Adidas and Kanye West produced highly sought-after shoes, which continue to be popular in the resale market. Bjoern Gulden, Adidas’ CEO, stated that the company is still determining how the sales will take place and emphasized that burning the goods would not be a solution. Adidas currently has approximately 1.2 billion euros worth of Yeezy shoes in storage.

Gulden explained that Adidas chose to sell the merchandise instead of donating it to prevent the products from indirectly reaching the market. Last week, the company warned that if it decided not to repurpose the remaining unsold Yeezy stock, it would negatively impact its operating profit by 500 million euros this year. Selling the products could help mitigate some of those losses, with Ye being entitled to a share of the proceeds based on the partnership terms.

Following the announcement, Adidas’ shares rose by 2% during the annual shareholder meeting. The company is currently facing a lawsuit from investors who claim that Adidas had prior knowledge of Kanye West’s problematic behavior before terminating their partnership. The investors allege that Adidas failed to limit financial losses and take necessary precautions to minimize their exposure.

Gulden defended the company’s collaboration with Kanye West, stating that despite the challenges, he is regarded as one of the most creative minds in the industry. Adidas stated that an internal investigation into reports of a “toxic” work environment created by the artist had been concluded. While not all allegations were substantiated, the company acknowledged that erratic behavior had presented challenges. Adidas is implementing changes to prevent similar issues from arising in the future.