INDIA: Adidas considers Reebok store closures
Adidas has revealed it may close as many as a third of its stores in India as part of plans to maximise profitability in the market.
Speaking to investors yesterday CEO Herbert Hainer said the company will "accelerate and and more aggressively restructure our business activities in India, including significant changes to our commercial business practices".
The announcement follows a warning last month that "accounting irregularities" of up to EUR125m had been discovered in its Indian operations. The company appointed a new local leadership team in the country at the end of March.
Hainer said the situation in India, "although unfortunate," will allow it to accelerate plans to "improve a specific underperforming part of our business".
The plans could result in a reduction of its Reebok franchise store base by "about one-third" as it focuses on maximising future profitability in the market.
"These, along with other planned actions, could lead to additional one-time charges in the remaining quarters of 2012 in an estimated amount of up to EUR70m. Rest assured, our goal is to begin 2013 with a clean sheet in this market," Hainer said.
Adidas has made dramatic cuts to the long-term revenue targets for its Reebok brand, which has been impacted by lost business in the US and fraud allegations in India....
Reebok, which is owned by sporting goods giant Adidas, has removed the position of global president, moving Ulrich Becker to president of the brand's North American business....
Some 100 Adidas workers at its Reebok India business are staging protests against the sportswear giant's new franchise model, according to reports....
The Finish Line has appointed Harvey Bierman as vice president of digital technology as the US sportswear chain continues to expand its digital business....
Sportswear giant Adidas remains committed to its restructuring programme in India, despite reports some of its Reebok franchisees are unwilling to change to the new franchise model it wants them to ad...
Lingerie and activewear manufacturer Tefron has swung to a second-quarter net profit on the back of increased sales of seamless apparel....
Sportswear giant Adidas has confirmed it will accelerate the restructuring of its Reebok business in India in order to set the unit up for a "fresh start" in 2013 - including the integration of local ...
Adidas-owned Reebok India may face penal action and money laundering charges for running unauthorised retail outlets as well as breach of export commitments, according to local media reports....
- Why China 5-year plan won't change garment-making
- ‘Fixing Fashion’ one stitch at a time
- Navigating a turbulent sourcing landscape
- Jordan garment sector strong amid regional unrest
- Hungary offers a mix of strengths and weaknesses
- US Q3 in brief: Burlington Stores, Guess, Chico's
- German sustainable textile scheme heads to Vietnam
- Golden Lady creates a new man-made fibre
- China and ASEAN upgrade FTA
- Global clothing and footwear trade to drop by 1.5%
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Trade and Trade Policy: The World’s Leading Clothing Exporters and Key Markets 2015