Adidas investigates major alleged corruption scandal in China

German sports equipment manufacturer Adidas is investigating a major alleged corruption scandal in China, which the group's local employees estimate to cost several million euros, reports the Financial Times (FT).

According to the business daily, the letter allegedly written by “Adidas employees in China” names several Chinese employees, including an executive from the company's marketing budget department, reports Capital.ba.

In a document distributed this month in China on the social network Xiaohongshu, the equivalent of Instagram, this budget is 250 million euros per year.

The letter was no longer visible on the platform on Sunday, but an alleged copy, the authenticity of which AFP was unable to verify, is used on several accounts.

The document cited by the FT accuses Adidas staff of having accepted bribes from service providers approved by the German group.

The head of Adidas in China was accused of receiving “millions in cash from suppliers as well as assets, including real estate”.

According to the FT, Adidas received a letter on June 7 warning the global brand of “possible violations” in China.

The group was not immediately available for comment.

Adidas, which debuted in China in 1997, once had more than 10,000 stores. In recent years, the Group has been faced with the rise of local brands, notably Anta and Li Ning.

Adidas' sales in the country increased again in the first quarter, by almost eight percent on an annual basis, according to results released in April.

( MINA Company, Ne.V. )