Two employees have left Adidas amid an ongoing investigation by the German sportswear brand into allegations of corruption in its China operations.
SEE ALSO: Adidas looking into bribery allegations across China business
Earlier this month, Adidas said it is investigating allegations of large-scale bribery in China after it received a whistleblower complaint that accused senior staff of embezzling “millions of euros.”
“While Adidas is investigating this matter together with independent external advisers, evidence has been found that in the interaction with local vendors, one employee violated the company’s code of conduct,” Claudia Lange, head of media relations at Adidas, said in a statement.
“Separately, a second employee failed to meet the company’s leadership expectations of demonstrating mutual respect and trust,” she said, adding that both had left the company and that the investigation continues.
Both former employees had worked in marketing for Adidas China, according to reports.
An anonymous letter claimed to have been written by “employees of Adidas China” and was also briefly shared this month on Chinese social media platform, Xiaohongshu. The document named several Chinese Adidas employees including a senior manager involved with Adidas’s marketing budget in the country.
The letter alleged that Adidas staff received bribes from external service providers who were commissioned by the German group.
In its most recent trading update, Adidas witnessed significant growth in all regions except North America, leading to an 8 percent increase in currency-neutral sales for the first quarter. China sales of the German sportswear giant grew by 8 percent during the the three months.
Looking ahead, Adidas said it expected a rebound in China this year, predicting a double-digit sales growth rate.