Kanye West Stakes Valuable Assets Like His Luxury Automobiles and Yeezy Apparel Company

Kanye West offered many expensive properties as security in a series of mysterious loan agreements. These possessions include real estate, several opulent cars, and pieces of his Yeezy apparel brand. The purpose of the action is to improve Yeezy LLC's financial situation. As reported by The Sun, earlier this month, West's apparel umbrella, Yeezy LLC, signed a contract with the logistics company 1981 Distribution. 

The 1981 Distribution company is managing Yeezy's inventory and shipment. The company specializes in distribution and warehousing facilities for online retailers. West pledged two luxury cars, his YZY Gap apparel line, 'various storage archive items', and a 'Stem Player designed by Teenage Engineering' as collateral for this deal, according to documents obtained by the outlet.

The UCC documents exposed a string of loans that West took out for the growth of his business empire starting in 2015. West also secured a second loan from CGB Agri Financial Services, which lends money and leases agricultural machinery. The debtors are listed under West and his Wyoming firm Psalm Cody Ranch LLC.

West's second debt is with Very Good Touring Inc., his touring firm, and City National Bank, also known as 'Bank to the Stars'. As per the publication, September 2015 saw the release of the loan, which was extended for a further five years, until April 2020. According to the documentation, the loan was again renewed for five more years. The final UCC is via the company Yeezy-Schloss, which was founded by designer Melissa Schloss, a former employee of West, who created her line of women's clothing.

In an agreement with Hildun Corporation in October 2022, West provided funding for the women's line. The names of Melissa and Yeezy Apparel are recorded as creditors for Hildun's services.

Reportedly, West's business dealings are on the line, and he is also involved in tax liens. A tax lien is a formal demand for outstanding debts placed on the property of a person or company. A lien may be placed on a business or taxpayer, according to the California Franchise Tax Board, if they fail to 'respond to our letters, pay in full, or set a payment plan'.

As reported by NBC News, as far back as 2012, California filed 17 more tax liens against three of Ye's companies as well as a charity that bears his name. The publication said that four of these liens were listed as current 'with no indication of them having been terminated or paid.' Experts concurred that the tax liens most likely 'pertained to payroll taxes', despite a California Employment Development Department spokesperson stating that the agency could not comment on taxpayer information.

As per Sourcing Journal, the most recent setback occurred in March of last year when Yeezy was hit with a $319,356.58 state tax debt from California. This resulted from the business's failure to pay $212,648.40 in taxes, which triggered a $9,644.40 interest payment and a $97,063.78 penalty.