Adidas investigates China embezzlement allegations

An investigation was opened by Adidas last weekend after the brand discovered possible corruption and fraud among its staff in China, according to reports from the Financial Times.

Sources familiar with the matter told the Financial Times that the Three Stripes had received an anonymous complaint alleging that several Adidas employees in China, including a senior executive who worked closely on the country's marketing budget, had embezzled millions of euros.

The letter claimed that the employees in question had received “bribes from external service providers commissioned by the German group”. This included receiving “millions in cash” from the brand’s suppliers and service providers as well as physical items like real estate.

Adidas released a statement regarding the alleged incident to Reuters, saying “Adidas takes allegations of possible compliance violations very seriously and is clearly committed to complying with legal and internal regulations as well as ethical standards on all the markets where we operate.

At the time of writing, the Financial Times reports that no Adidas employees have been placed on leave due to the ongoing investigation.