Adidas seeks probe into alleged irregularities at Reebok India

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Press Trust of India Berlin/New Delhi
Last Updated : Jan 21 2013 | 4:10 AM IST

"Based on the commercial irregularities we have uncovered at Reebok India, we have now filed a criminal complaint with the Indian law enforcement authorities (for) formal investigation," Adidas said in a statement.

However, it did not provide further details stating the matter rests with the authorities.

Reacting to the company's statement, Adidas India's former Managing Director Subhinder Singh Prem said a third party investigation will help uncover the truth.

He has also filed a suit against Adidas India in the Delhi High Court, contesting termination of his services.

"I have learnt that Adidas has petitioned the law enforcement agencies. I am happy that now a third party will investigate and the truth will emerge. I have full faith in the Indian legal system," Prem said in a statement.

Adidas alleged earlier this month that it has found commercial irregularities to the tune of 125 million euros in its subsidiary Reebok India.

The company also announced plans to close one-third of around 900 Reebok stores as part of a restructuring strategy in India.

Adidas, that globally acquired Reebok in 2005, began integration of Adidas India and Reebok India last year.

In March this year, Adidas announced top-level management changes in India and said that managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat have "left the company with immediate effect".

  

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First Published: May 12 2012 | 7:05 PM IST

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