Adidas Under Pressure

Adidas is feeling the pressure from both Cornell          
                    University and Reebok.     

On October 1, 2012, Cornell University is terminating their eight-year contract with Adidas due to labor rights issues that affected 2,800 factory workers, in Indonesia. In April of 2011, the Adidas factory unexpectedly closed it's doors and laid-off workers, but they have yet to pay the legally-owed $1.8 million in severance. The yearlong student protest at Cornell University successfully ended with the termination of the Adidas contract and now Cornell students await Adidas response. 

Subhinder Prem

In addition to issues with Cornell University, Adidas is facing declining sales with it's Reebok segment, as well as trouble with it's Reebok India division. Adidas bought Reebok in 2005 and with this new segment, Adidas was able to more fiercely compete with it's rival, Nike.  Unfortunately, seven years later, Adidas is now experiencing a downward slope solely with Reebok sales; Reebok sales fell 26% in this years second quarter. Furthermore both manager and chief of operations for Reebok India, Subhinder Prem and Vishnu Bhagat, were arrested for fraud (by means of creating fictive sales and manipulating company accounts) this past Thursday. 

Adidas has yet to make any public statements in regards to Cornell University or it's issues with Reebok. Please check back, I will keep you posted on all updates.

                                  Yours Truly, Nicole S.

Article Post: http://news.yahoo.com/adidas-slashes-reebok-2015-sales-target-071052872--sector.html