Sportswear giant Adidas says it remains committed to sourcing in China and will continue to work with more than 300 suppliers there despite shutting its only company-owned Chinese apparel factory earlier this year.

The factory in Suzhou, which employed 160 people, was closed in October to give Adidas a more consistent sourcing structure. The company said workers were given a notice period and would receive a package with benefits.

Adidas is also facing legal action after it terminated contracts with several Chinese suppliers. They say they are not satisfied with the compensation they received because machines and software systems were tailored for Adidas, according to China Business News.

However, in a statement issued to just-style today (20 December), Adidas said: "We have given fair and proper legal notice to our partner suppliers with regards to the termination of our business contracts.

"We have fulfilled all of our contractual obligations, but will nevertheless support supplier partners with consultative advice in their communication and transition plans."

The company added: "China has been, and will remain, a key sourcing market for the Adidas group.

"It is true that we are rationalising our sourcing structure but this will not impact the total volume of Adidas production in China. Adidas partners with 300+ supplier factories in China and our commitment to China continues."