Adidas launches probe into alleged bribery in China
- Adidas is investigating allegations of embezzlement and kickbacks in China, a key market for the sportswear company.
- The probe includes allegations of large-scale bribery by staff in China, with claims of a senior manager receiving real estate and millions in cash from suppliers.
- The investigation aims to uncover compliance violations and address the reported bribery issues in the Chinese market.
Adidas is investigating compliance violations in China following allegations of embezzlement and bribery involving senior staff. An anonymous letter accused executives of embezzling millions of euros and receiving kickbacks from external service providers. The company is taking the allegations seriously and conducting an intensive investigation with external legal counsel. The letter, shared on social media, highlighted nepotism and workplace bullying by a senior executive in Greater China. Adidas, the world's second-largest sportswear retailer, is facing challenges in the Chinese market due to competition from local rivals and controversies over Xinjiang cotton. The company has made leadership changes in China to revive business and expects a rebound in sales, with a double-digit growth rate predicted.