The German sportswear firm is operating with external lawful counsel immediately after acquiring the letter on June 7, it reported in an emailed statement.

China was a growth engine for Adidas just before the pandemic, but boycotts of Western manufacturers then pared company. The business has returned to development in the state in current quarters, albeit from a lesser foundation, thanks to a rebound in demand from customers for shoes which includes basic 3-striped sneakers like the Samba and the Gazelle.

The nameless letter briefly appeared on the Chinese social media platform Xiaohongshu before this thirty day period, the Monetary Instances reported above the weekend. The letter, which statements to have been written by “employees from Adidas China,” named several Chinese staff, together with a senior supervisor associated with Adidas’s marketing spending plan in the nation. 

The letter, based on screenshots that circulated on social media and information sites in China, claimed that Adidas staff members obtained kickbacks from external company providers, with one more senior manager obtaining potentially gained “millions in cash” from suppliers and physical merchandise these as genuine estate.

Adidas said it could not provide more information and facts. The company can take the allegations quite significantly, it reported. The shares fell considerably less than 1% in early Frankfurt investing. They have attained about 21% so much this year.