Adidas India sued over defamation claim
Within days of Adidas disclosing 'commercial irregularities' in its Indian operations, its former India chief Subhinder Singh Prem has initiated legal action against the global giant for defamation and unfair termination of his services.
New Delhi: Within days of Adidas disclosing 'commercial irregularities' in its Indian operations, its former India chief Subhinder Singh Prem has initiated legal action against the global giant for defamation and unfair termination of his services.
"I have sent legal notices to Adidas, one for defamation and another one for termination of my services in the manner they have," Singh said, while refuting allegations of any financial irregularities on his part.
He said, Adidas has not yet responded to the notices.
Singh said, on Monday Adidas had sent him a communication stating that his services as the Managing Director (MD) of the company have been terminated.
In March Adidas had announced top level management change and appointed Germans on the top positions.
"In the last 40 days (since the management change), I have sent them (Adidas) numerous e-mails asking for the reasons, but none of them was responded to," he said.
On Monday, the German sportswear maker had said it has found some commercial irregularities to the tune of 125 million euro in Reebok India, which is owned by Adidas.
Singh was heading Reebok's business in India before he was made the MD of Adidas India last year as a part of an integration of the businesses of both Adidas and Reebok brands.
Adidas is also in the process of restructuring Reebok India's business which might cost the company Euro 70 million, it has said.
When asked what could be the possible reasons of Adidas' statement on "irregularities" Singh said: "I do not understand why? They may be trying to undervalue the company to get some business benefit."
Commenting on his position Singh said: "Let (Adidas) them come up with any charge against me, I will stand up against it as I have conviction in my abilities."
He said Reebok's total sales in India are around 90 million euro.
"I do not know how come the loss from the so called irregularities be 125 million euro," he added.
The Adidas Group today reported a 17 percent increase in in the first quarter of 2012 in group revenue at 3.824 billion euro from 3.273 billion euro in 2011.
The group's net income increased to 289 million euro in the first quarter of 2012 from 209 million euro in 2011.