Adidas Plans to Shut Down

Bangalore: Adidas, the well known sports brand, has announced about the 38 percent growth in their annual profit but along with this good news came the unexpected news of their plans of shutting down 400 stores that have huge rentals.

Adidas Group in a preliminary statement said that commercial irregularities are discovered at its Reebok India Company unit which will cost them about 125 million euros (871 crore) in pre-tax charge. And the company will have to restate its financial statements from last year.

“As these irregularities have been deemed to have occurred prior to the 2012 financial year, the Adidas Group might have to restate prior-year consolidated financial statements in line with the requirements of IAS 8,” Adidas said.

“Management assures its stakeholders that it has, and will continue to, vigorously pursue a course of action to protect the group’s interests, which has already resulted in the appointment of a new local leadership team in India at the end of March,” Adidas said.