Adidas to invest 70-million in Reebok India
German sportswear maker, Adidas has said that it remains committed to its plans to invest 70-million to boost the presence of Reebok in the Indian market.
The sales of Reebok India fell 26 per cent for the quarter from April to June mainly due to financial irregularities in operations that were reported widely by the media. Adidas had filed a criminal complaint with the India law enforcement authorities in the commercial irregularities found in Reebok India in May.
Adidas AG Chief Executive Herbert Hainer said on Thursday that, "While the issue is unpleasant, we will achieve our goal and set Reebok up for a fresh start in India in 2013."
Hainer had earlier said that the issues in its Indian operations could lead to further charges of up to 70 million for the company. The company is looking to restructure its franchise model in the country. The company believes that the widespread irregularities in Reebok India could result in costs of $157 million in the country.
The Serious Fraud Investigation Office is currently investigating the case and it is excepted to submit a report in the next five months.