Kanye’s legal troubles continue to mount, and his Yeezy brand is now suffering as a result.
According to a report by NBC News, government records in the former of state tax liens from the last two years show Yeezy owes $600,000 in unpaid tax debt. Ye’s brand was sent three different liens in 2021 over the matter.
RELATED: Floyd Mayweather Drops $4.7 Million On Rare Artwork
A lien is a claim made on a person or business’s assets in response to an unpaid debt. In California, a lien can be imposed if a tax payer or company doesn’t respond to taxes owed, whether to pay fully or agree to a payment plan.
The publication spoke to financial experts, who say the six-figure debt could be a sign of deeper problems in the company.
“Multiple California tax liens, adding up to $600,000, that’s certainly a sign of either extreme incompetence or extreme cash problems,” Edward McCaffery, a professor at USC Gould School of Law, explained.
Ye founded Yeezy in 2017, and in an annual filing made in January the company as listed as in “good” standing. But Kanye’s financial problems have been increasing amid his recent controversial behavior.
The fashion designer lost a number of partnerships, including with brands like Balenciaga, the Gap, and Footlocker.
Adidas eventually announced it was cutting ties with Ye’s Yeezy brand after nearly a decade of collaboration. However, Adidas has said it plans to continue selling Yeezy products, but without the rapper’s involvement.
After losing the Adidas partnership, Forbes claimed that Kanye had lost his billionaire status. He went from being worth approximately $1.2 billion to $400,000 million.
But Ye doesn’t have access to all his funds. The father-of-two recently admitted the IRS had frozen four of his accounts totalling $75 million, since he owes $50 million in back taxes.
He’s also facing multiple lawsuits, including a $250 million defamatory case filed by George Floyd’s family after Kanye made untrue remarks about his death.
Additionally, he’s facing allegations of inappropriate workplace behavior and discrimination, and has already paid undisclosed settlements to former employees.
Kanye also recently added one huge bill to his monthly expenses — $200,000 a month in child support to his ex-wife Kim Kardashian.
The exes agreed to the sum at the end of last month in order to finalize their divorce, after Kim originally filed in early 2021. They were set to go to trial in a few weeks if they couldn’t agree to a settlement outside of court.
Though Kanye has said Kim cares for their four kids 80% of the time, they agreed to split legal and physical custody.
Sources: NBC News,
Source: Read Full Article