Beyoncé and Ivy Park are splitting ways.
According to an insider who spoke to The Hollywood Reporter, the most decorated Grammy Award winner and Adidas, Ivy Park’s parent brand, mutually agreed it was best to terminate their relationship.
The news comes just one month after a recent Wall Street Journal report revealed that the former Destiny’s Child member’s popular clothing line “missed internal sales projections by over $200 million last year.”
While the Houston native still made $20 million in the deal, the line only made $40 million in 2022, a huge slump from the $93 million it made the year before. The company had projected the line to do $250 million.
This year, Adidas predicted the line would do $63 million in sales, although they had originally projected it would do $335 million.
“Adidas stands to lose $10 million on the partnership in 2022,” the report read at the time of its publication.
Sources told WSJ that the Ivy Park-Adidas partnership was set to expire at the end of this year, and executives were debating whether to revamp the line or end the deal entirely.
Originally, the shoe giant hoped Ivy Park would match the success of Kanye West’s Yeezy brand, which ended last year following a string of anti-Semitic comments the rapper made on both social media and interviews.
Sources say part of Ivy Park’s waning popularity was due to disagreements between Beyoncé’s team and Adidas about how to market the brand. Furthermore, the 41-year-old mother of three was rarely seen wearing apparel from the line, unlike West and his then-wife Kim Kardashian, who wore the Yeezy brand frequently.
Although the future of Ivy Park is uncertain, the Renaissance entertainer is still expected to earn $20 million in compensation from the activewear brand, as she has in previous years, according to the report.
An Ivy Park representative had refuted claims that the brand was facing a downturn calling analysts’ predictions “not correct.” Ivy Park is “strong and successful” and continues “to be inspired by our collective vision. [We] are proud of the work we have created together,” the spokesperson told Forbes, adding that the company does not disclose “key financial figures for individual product categories.”
Ivy Park was launched in 2016 in collaboration with Topshop, but she obtained full ownership of the brand two years later. In 2019, Adidas partnered with her on the brand, creating widespread demand.
Forbes reports that Beyoncé is estimated to be worth $450 million as of June 2022.