German sports equipment and apparel manufacturer Adidas is investigating a large-scale corruption case in China, valued at “millions of euros,” allegedly involving local employees of the group, according to the Financial Times on Sunday.
The newspaper reported that a letter written by “Adidas China employees” accuses several Chinese employees by name, including an executive in the company’s marketing budget department. The document, circulated this month in China on the social media platform Xiaohongshu, which is equivalent to Instagram, estimates the amount at 250 million euros annually.
The message could no longer be seen on the platform on Sunday, but an alleged version of it is being used in several accounts. The document, cited by the Financial Times, accuses Adidas employees of accepting bribes from service providers commissioned by the German group.
An executive at Adidas China is accused of receiving “cash amounts worth millions from suppliers, as well as properties including real estate.”
According to the Financial Times, Adidas received a warning letter on June 7 about “possible violations” in China. The group was not immediately available for comment.
According to local newspapers, Adidas, which began its operations in China in 1997, had more than 10,000 stores. However, in recent years, the group has faced competition from local brands such as Anta and Li Ning.
Despite this, Adidas’ sales in China rose by about 8 percent year-on-year in the first quarter, according to results published in April.
