Earlier, we wrote that several large retailers, including the famous sportswear manufacturer Adidas, have announced the decision to refuse to pay rent for closed stores during the quarantine period in Germany. Only small private landlords could count on receiving money. It was stated that due to the inability to do business properly around the world, even such a large company is not able to withstand such loads.
This statement caused an extremely adverse reaction from the German government and ordinary citizens, including in other countries. Social networks were filled with criticism of such a position. Thus, a well-known politician and Vice-President of the European Parliament Katharina Barley said that she would now boycott Adidas products – a situation that many consumers have supported.
All this forced the manufacturer to reconsider its decision. The company called it “a mistake that lost credibility” and said it would pay the rent for April and would do everything to correct the situation.
The company is now in the process of reviewing its plans and streamlining its internal processes to minimize losses. Layoffs may follow – Germany has a government scheme that allows companies to lay off employees while the government covers part of their wages. The salaries of top managers will also be reviewed, and the buyback of shares will be stopped. However, Adidas warns that despite all these measures, additional loans may still be required to mitigate the crisis.
