Adidas is facing allegations of large-scale bribery in China, prompting the sportswear giant to launch an investigation into the matter.
Senior employees have been accused of embezzling millions of dollars, according to a report by the Financial Times on Sunday.
The allegations surfaced in a letter purportedly written by “employees of Adidas China”, which specifically named several Chinese employees involved in the alleged misconduct.
Among those accused is an executive responsible for managing Adidas’ marketing budget in China, which reportedly amounts to 250 million euros ($268 million) annually. Another Adidas China manager is alleged to have received significant sums of cash from suppliers, as well as other physical assets like real estate.
Although Adidas has not yet commented on the matter, it has been reported that the company received a letter on June 7 alerting it to potential compliance violations in China. In response, Adidas has initiated a thorough investigation into the allegations.
The letter containing the accusations was initially posted on the Chinese social media platform Xiaohongshu earlier this month. While it is no longer visible on the website, copies of the letter have circulated on various accounts. However, the authenticity of these copies could not be independently verified by AFP.
Insiders within the company cited by the Financial Times indicated that while the letter lacked concrete evidence, it appeared to be well-informed about internal company affairs, raising concerns among Adidas officials.
