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        <title><![CDATA[Gap stock plunges after Kanye West threatens to kill Yeezy deal]]></title>
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            <media:title type="html">Gap stock plunges after Kanye West threatens to kill Yeezy deal</media:title>
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        <content:encoded><![CDATA[<p>Shares of the Gap tumbled as much as 7.4 percent Monday after Kanye West threatened to kill its <strong>fledgling partnership with his Yeezy brand</strong> unless he was given a spot on the company&#8217;s board.</p><p>The rapper-turned-politician issued a similar ultimatum to sportswear giant Adidas — which produces his label&#8217;s sought-after sneakers — in a rambling speech at his first 2020 presidential campaign rally over the weekend. West, 43, said he would &#8220;walk away&#8221; from both companies unless they put him on their corporate boards.</p><p>&#8220;In risk or no risk of losing whatever deal possible, I am not on the board at Adidas. I am not on the board at Gap,&#8221; West <strong>said</strong> at the Sunday evening event in South Carolina. &#8220;And that has to change today, or I walk away.&#8221;</p><p>It&#8217;s uncertain whether the &#8220;Closed on Sunday&#8221; artist will make good on his threat. But if he does, it could spell the premature end of a partnership that Gap expected to generate $1 billion in annual sales after five years, <strong>according to The New York Times</strong>.</p><p>It&#8217;s also not clear whether Gap or Adidas have considered adding West to their boards. Adidas declined to comment on West&#8217;s remarks Monday, while Gap did not immediately respond to a request for comment.</p><p>Gap shares soared nearly 19 percent on June 26 when it announced the Yeezy Gap line of affordable &#8220;elevated basics,&#8221; set to hit stores next year. Under the deal, Gap agreed to pay Yeezy — which West solely owns — royalties and potential equity related to sales performance.</p><p>Yeezy&#8217;s Adidas sneakers business is no small operation, either — Bank of America valued it at up to $3 billion last year, <strong>according to Bloomberg News</strong>, and <strong>Forbes estimates</strong> that it raked in $1.3 billion in revenue in 2019.</p><p>But West&#8217;s ultimatum did not hurt the German conglomerate&#8217;s stock price. Its Frankfurt-listed shares ended the day up 1.8 percent at 242.20 euros ($277.07).</p><p>Gap separately announced plans Monday to require customers to wear masks in its North American stores starting Aug. 1 amid a spike in coronavirus cases. Other retail giants such as Target, Walmart and CVS have rolled out similar mandates.</p><p>Gap shares were off 4.1 percent at $12.36 as of 1:21 p.m.</p>]]></content:encoded>
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