Okabashi brands, one of the few footwear companies to manufacture shoes in the U.S., has laid off about two thirds of its employees after Adidas terminated its business relationship with the Yeezy brand, owned by Kanye West. The company said that it stood for values that were similar to Adidas. However, it did not have enough orders, without the Yeezy brand, so it had to layoff employees.
Okabashi Brands, based in Buford, Georgia released a statement which confirmed that it had “laid off 142 employees.” The decision was taken after “Adidas cut ties with Ye.” The Atlanta-Journal Constitution reported the news.
Okabashi said that it agreed with Adidas’ decision to cut ties with Kanye West’s Yeezy brand but was disappointed that it would result in layoffs.
The company said, “Adidas clearly does not tolerate hate speech and Okabashi also stands for these values. Unfortunately, this means that Okabashi has to stop its current production for Adidas. As of right now there are not enough orders to keep all employees busy with work.”
In April 2020, Okabashi entered a contract to manufacture Foam Runner, a Yeezy product in the USA. The manufacturer specializes in making sandals and foam footwear products. After Adidas shut down its collaboration with the Yeezy brand, the company had to shut down some of its production.
The company said that it would offer severance packages and extended healthcare coverage for the laid off workers. The Georgia based footwear company also said that it was working with local agencies and manufacturers to explore other employment opportunities for the laid off workers.
Okabashi also said that it would continue to produce its own branded products and was “pursuing other partnerships opportunities” in order to “leverage its domestic manufacturing capacity and know-how.”
Okabashi brand include Okabashi, Oka-B and Third Oak. These brands are sold in retail stores and online. They are one of the few manufacturers whose footwear is made in the U.S.
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