The German sporting goods manufacturer Adidas faces serious allegations and is currently intensively investigating indications of bribery and embezzlement among its employees in China.

The allegations relate to compliance violations, i.e., violations of laws or internal rules. According to the "Financial Times," the anonymous letter originates from within the company and implicates several Adidas employees, including a member of higher management. The affected employees are allegedly said to have received kickbacks from external service providers. One accused individual is even claimed to have accepted "millions in cash and benefits such as real estate from suppliers.

Although the letter does not contain concrete evidence for the allegations, the authors appear to be well-informed about internal details at Adidas. The price of Adidas shares came under significant pressure on Monday as a result of the reports.

In the statement from Adidas, it further reads: "Adidas takes allegations of possible compliance violations very seriously and is committed to adhering to legal and internal regulations as well as ethical standards in all markets in which we operate." Further information could only be provided after the investigations are concluded.

Adidas had recently regained a stronger foothold in the important Chinese market under the new CEO Björn Gulden. The company, like other Western textile manufacturers, had suffered there from the effects of the coronavirus pandemic and calls for boycotts due to Western criticism of the treatment of the Uighur minority. For the current year, Adidas expects to see double-digit growth rates in China again.

The company also attributes the upswing to the fact that its Chinese subsidiary, under the leadership of the country head Adrian Siu, hired in 2022, has focused more on Chinese fashion tastes.