Adidas, the German sports goods manufacturer, has told its employees in India that it may sell its subsidiary Reebok.
This announcement has sent waves of uncertainty through the local ranks of Adidas as due to pandemic, retail jobs are at a premium because of the huge number of store closures and loss of revenue.
Reebok was acquired by Adidas for around $3.8 billion in 2005.
A global spokesperson for Adidas told TOI, “It has started to assess strategic alternatives for Reebok, including but not limited to a potential sale of the business.”
“It is important to note that no decision has been taken to date, and Adidas could also decide to continue owning Reebok as part of its new strategy. A decision will be communicated as part of the official launch of our new strategy on March 10, 2021. The goal of our efforts is to select the alternative for Reebok that promises the best possible growth prospects and the future for both the brand and its employees. We are in close contact with our employees to address their questions on the announcement,” the spokesperson added.