Athletic apparel company Adidas has launched an investigation into allegations of "compliance violations" in China after receiving an anonymous letter earlier this month accusing local executives of embezzling "millions of euros," according to news reports.
Adidas confirmed it had received an anonymous June 7 letter indicating potential "compliance violations" in China, the Wall Street Journal and Bloomberg reported.
The shoe and sportwear maker said it was investigating the matter together with external legal counsel, the news outlets reported.
Chinese state media outlet Jiemian last week reported that an anonymous group of whistleblowers, who called themselves employees of Adidas China, had sent the letter containing the allegations to the company's German headquarters.
The letter, which was published by Jiemian but also widely circulated on social media, accused senior executives and several staff members of embezzlement and receiving bribes from suppliers in the form of cash and real estate, and of taking kickbacks from celebrities and advertising agencies.
One senior executive was also accused of workplace bullying, such as swearing at subordinates, and of nepotism.
The whistleblowers said that if Adidas did not address the issues brought up in the letter, the matter would be disclosed to external media and "legal departments."
Greater China, which encompasses mainland China, Hong Kong and Taiwan, makes up 15% of Adidas' sales, according to its 2023 annual report.
The German brand is the second-largest sportswear brand in China, behind Nike.
Adidas' Greater China sales grew 8% in 2023, after declines between 2019 and 2022 due to COVID-19 pandemic lockdowns and a backlash in China against Western brands which refuse to use Xinjiang cotton. Activists say cotton produced in Xinjiang often involves forced labor.
Adidas regularly engages popular Chinese celebrities to be its brand ambassadors, including singer and actor Jackson Yee, popular Chinese rapper Gali and Dilraba, a popular Chinese singer of Uyghur descent.
ESPN and other channels return to DirecTV with a new Disney deal after a nearly 2-week blackout
DirecTV announced Saturday it had reached a deal with Walt Disney Co. that will restore ESPN and ABC-owned stations to its service after a nearly 2-week dispute that blacked out those networks for millions of viewers across the U.S.
The end of the impasse came in time for sports fans to watch ESPN's slate of college football games on DirecTV. It also will ensure that ABC's telecast of the Emmy Awards on Sunday night will be available in more major markets where viewers subscribe to DirecTV's pay service.
ABC had been unavailable since Sept. 1 on DirecTV in several markets where the station is owned by Disney. Those were located in the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina.
DirecTV's 11 million subscribers abruptly lost access to ESPN, the ABC-owned stations and other Disney-owned channels such as FX and National Geographic during the Labor Day weekend in a dispute over carriage fees and programming flexibility.
Some viewers were watching the fourth round of the U.S. Open tennis tournament when ESPN suddenly went dark and others were getting ready to watch a college football showdown between LSU and Southern California.
The impasse also kept the NFL's opening game of Monday Night Football off of DirecTV's service.
Financial details of Disney's new deal with DirecTV weren't disclosed as part of Saturday's announcement. DirecTV's payments to Disney will be based on "market-based" pricing, according to the announcement about the deal.
The agreement also will give DirecTV the ability to offer Disney's video streaming services a la carte as well as in its own bundled packages. DirecTV won the right to include ESPN's forthcoming direct-to-consumer... Read More