German tax authorities have conducted raids at Adidas headquarters and several satellite offices as part of an extensive investigation into potential customs and import regulation breaches. The probe, spanning from October 2019 to August 2024, centres on the sportswear giant’s compliance with tax regulations concerning product imports into Germany.
The European Public Prosecutor’s Office in Luxembourg has launched a criminal investigation into the company, though not explicitly naming Adidas, targeting a German “corporate group trading in sportswear” over suspected tax evasion related to customs duties and import sales tax. The alleged offences, occurring in Germany and Austria, reportedly impact the EU budget.
German business publication Handelsblatt reports the suspected tax damages outlined in the search warrant could reach “hundreds of millions of dollars”. Adidas has maintained its cooperation with authorities, stating it has been in communication with customs officials for several years and is providing necessary documentation.
The investigation adds to a series of challenges faced by the world’s second-largest sportswear manufacturer. The company has weathered declining North American sales following the termination of its partnership with Kanye West over antisemitic remarks. A subsequent controversy emerged in July when the company apologised for using Palestinian-American model Bella Hadid in a campaign promoting retro trainers from the 1972 Munich Olympics.
Despite these setbacks, Adidas remains optimistic about the financial implications of the current investigation. The company’s statement emphasised it “does not expect a significant financial impact in connection with the investigation,” though it had previously disclosed “higher provisions” for unspecified “customs-related risks” in 2022.
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