AceShowbiz - Beyonce Knowles and Adidas are breaking up. The "Break My Soul" songstress and the company have reportedly mutually agreed to part ways following reports about Park Ivy line sales decline.
The Hollywood Reporter broke the news on Thursday, March 23, citing intel from a source close to the situation. According to the news outlet, the decision to end the partnership was driven by major creative differences between Ivy Park and the German lifestyle brand.
Beyonce is expected to regain full ownership of her brand. She is reportedly excited to chart her own path and maintain creative freedom with Ivy Park.
Back in February, Wall Street Journal had anticipated such move as it reported that Ivy Park was struggling as a result of "weak sales" in the past year. According to the news outlet, the brand's sales dropped by more than 50% to only about $40 million in 2022, bringing in just $40 million in 2022 compared to $93 million in 2021.
The report noted that Adidas had projected Ivy Park's sales to total around $250 million last year. But the sales fell short of the projections, leaving a "$200 million hole in the company's annual projections."
Before cutting ties, 2023's projections were shifted from $335 million to a mere $65 million. She previewed Park Trail, her latest Adidas x Ivy Park collaboration in January in Dubai, a day before she performed a private concert in the city. Beyonce's contract ends at the end of the year, but she's expected to still earn her $20 million annual salary from the deal.
Beyonce launched Ivy Park as a joint venture with Sir Philip Green of Topshop in 2016. The 50-50 venture ended in 2018, with the R&B diva gaining full ownership of Ivy Park. She then relaunched the brand in the same year with Adidas.
Neither Beyonce nor Adidas has immediate comment on the reports.