Adidas seeks criminal probe into Reebok India irregularities
German sportswear giant Adidas has petitioned the Indian law enforcement authorities to open a criminal investigation into alleged financial irregularities uncovered in its Indian arm Reebok India.business Updated: May 12, 2012 12:10 IST
German sportswear giant Adidas has petitioned the Indian law enforcement authorities to open a criminal investigation into alleged financial irregularities uncovered in its Indian arm Reebok India.
A "criminal complaint" was filed with the Indian law enforcement authorities in order to bring formal charges in connection with the "commercial irregularities uncovered at Reebok India", an Adidas spokesman told PTI.
An Adidas team is currently in India to assist in the investigations.
Further details cannot be made public at this stage as investigations were continuing, the spokesman said.
Adidas claimed earlier this month that it had uncovered commercial irregularities to the tune of 125 million euros in its subsidiary Reebok India and announced plans to close one-third of around 900 Reebok stores as part of a restructuring strategy.
In March, the company announced top-level management changes in Adidas India and said that managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat have "left the company with immediate effect".
Prem served as the head of Reebok’s India business before he was appointed as the MD of Adidas India last year.
He was replaced by Claus Heckerott as new India chief of Adidas.
The spokesman confirmed that Adidas intends to close one-third of its Reebok shops, which are run by its licence-holders.
A reorganisation of Reebok’s business in India was planned long before and the slashing of its stores has nothing to do with the alleged financial irregularities uncovered in the company, he said.
The spokesman also dismissed as "pure speculation" media reports that Adidas has plans to close some its stores in India.
"Those reports are pure speculations. There are no such plans," he said.
Adidas currently operates more than 1,000 stores in 325 towns and cities across India.
First Published: May 12, 2012 12:08 IST