By Nina Kienle


Adidas said it parted ways with two employees in China as part of a probe into potential compliance violations in the country triggered by an anonymous letter.

During the investigation, it was found that one employee violated the company's code of conduct during interactions with local vendors. Separately, a second employee failed to the meet the leadership expectations of demonstrating mutual respect and trust, the German shoe and sportswear major said Wednesday.

Both employees have left the company, it confirmed.

The move comes as Adidas investigates allegations included in a letter that senior executives in the country received millions of dollars in kickbacks from service providers.

"On June 7, 2024, we received an anonymous letter indicating potential leadership concerns and allegations with regards to compliance violations in China," Adidas said.

A letter circulating on Chinese social media accused Adidas executives in China of receiving personal rebates from various marketing services providers in the country. The authors of the letter claimed to be longtime Adidas employees in China.

The investigation remains under way, the company said.

The probe comes as the German sportswear company seeks to revive its fortunes in China in a broader push to reinvigorate the brand globally.


--Matthias Goldschmidt contributed to this article


Write to Nina Kienle at nina.kienle@wsj.com


(END) Dow Jones Newswires

06-26-24 1053ET