KANYE West has placed several assets on the line for the sake of his clothing company Yeezy LLC, The U.S. Sun can exclusively reveal.
The 46-year-old rapper has put a Yeezy clothing range, luxury motors, and land as collateral in a number of mysterious financial deals.
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According to documents obtained by The U.S. Sun, Yeezy LLC – the clothing umbrella owned by Kanye – entered into an agreement with logistics firm 1981 Distribution earlier this month.
The 1981 Distribution firm specializes in distributing and warehouse facilities for e-commerce and it appears the firm is handling Yeezy’s stock and shipping.
As collateral for this deal, Kanye put up two luxury motors, his YZY Gap Apparel range, “various storage archive items” and “Stem Player designed by Teenage Engineering,” The U.S. Sun can confirm via documents obtained from Uniform Commercial Code financial statements.
Back in 2021, Kanye collaborated with the Swedish electronics firm Teenage Engineering to design the Stem Player, which is one of the assets on the line for the new deal with 1981 Distribution.
The device splits a song into four strands and other tracks can be added on top.
Kanye’s Stem Player design was criticized for being “overpriced” and an “engineering disaster.”
UCC is a lender’s legal declaration of a lien on an asset to secure a loan or lease of equipment.
ON THE LINE
The UCC documents revealed a series of loans Kanye has been tied up in dating back to 2015 for the success of his business empire and 1981 Distribution isn’t the only company associated with Yeezy LLC’s assets.
Kanye landed an additional deal with CGB Agri Financial Services, which lends money and leases agricultural machinery.
The debtors are listed under Kanye and his Wyoming firm Psalm Cody Ranch LLC.
He purchased the 4,524-acre rural estate in Cody for $7.7 million in October 2019.
Some of the land was used for flood irrigation with the infrastructure to add irrigation pivots.
If the loan isn’t repaid, then the collateral includes all “irrigation equipment of every kind and nature, including but not limited to center irrigation pivots, pumps, PVC pipe, sprinklers and motors.”
KANYE’S LOANS
Kanye’s second outstanding loan is with City National Bank – nicknamed “Bank to the Stars” – with his touring company, Very Good Touring Inc.
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The loan was issued in September 2015 and continued for another five years to April 2020.
The paperwork reported the loan was then extended for yet another five years.
According to the UCC financial statement “all assets of debtor” had been used as collateral for this deal.
It was unclear if any of these assets crossed over into Kanye’s personal finances.
The final outstanding UCC is through the firm Yeezy-Schloss, which was set up with his former employee, designer Melissa Schloss, who launched her own women’s fashion range.
The women’s line was funded by Kanye in a deal with Hildun Corporation in October 2022.
Hildun has provided accounting services and offered lines of credit to other high-end named fashion lines including Tommy Hilfiger, Marc Jacobs, and Alexander Wang.
Yeezy Apparel and Melissa’s personal name are listed as debtors for Hildun’s services.
It is not confirmed what potential assets were offered as collateral.
PAY UP!
Kanye tied up in tax liens as well as his business deals on the line.
Last month, Yeezy Construction was hit with a new tax lien from the California State for $12,425 including penalties and interest dating back from July 2021 to June 2023.
Kanye’s California land is associated with a different firm than the one connected to his land in Wyoming.
Additionally, his New York firm Donda Services had an outstanding tax lien for $10,924 from October 2020 to June 2022.
These liens add to the amassed tax debt of Yeezy Apparel LLC, which has four active liens filed against it over the last three years totaling $934,033.56.
UNSEEN LAWSUITS
His company West Brands Fashion was hit with a lawsuit that has managed to fly under the radar.
Back in 2018, Kanye’s employee Crystal Ozonian sued for $90 in unpaid wages and expenses.
A judgment lien was filed in January 2022 totaling $490.87.
To date, West Brands Fashion has failed to respond to the lien or court judgment.
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