Adidas investigating corruption allegations in China: FT

Lina Portman3 weeks ago

0 1 minute read

German sportswear giant Adidas has launched an investigation into allegations of large-scale corruption in China after high-ranking employees were accused of embezzling millions of dollars, the Financial Times reported on Sunday.

A letter, allegedly written by “Adidas China employees,” accused several Chinese employees by name, the newspaper reported.

The accused…

A letter, allegedly written by “Adidas China employees,” accused several Chinese employees by name, the newspaper reported.

Among the defendants was one of the company executives involved in Adidas' marketing budget in China, which was estimated to be 250 million euros ($268 million) a year.

Another Adidas China director allegedly received “millions in cash from suppliers and physical assets such as real estate,” according to the FT.

Adidas could not immediately be reached for comment.

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The letter, published this month on the Chinese social network Xiaohongshu, was no longer visible on the site on Sunday, but an alleged copy, the authenticity of which AFP was unable to verify, was published on several accounts .

Adidas had received a letter on June 7 warning of “potential compliance violations in China” and was conducting “a thorough investigation” into the matter, the FT said.

Company officials cited by the newspaper said the letter did not provide evidence of the allegations but appeared knowledgeable on confidential internal matters.

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