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Adidas receives billion dollar loan from development bank KfW

Two people are wearing protective masks in front of an Adidas store in Berlin.
Picture: EPA

The sporting goods manufacturer Adidas receives a billion dollar loan from the state development bank KfW due to the consequences of the corona pandemic. KfW had made a loan commitment of 2.4 billion euros, as the group announced.

Dhe world’s second largest sporting goods manufacturer Adidas needs billions of dollars from the state in the corona crisis. The federal government approved a syndicated loan of EUR 3 billion on Tuesday, of which the development bank KfW alone had EUR 2.4 billion, Adidas said in Herzogenaurach.

The remaining 600 million euros are shared by more than seven banks. Due to the worldwide store closings, the highly profitable company has lost sales. In China alone, Adidas are missing up to a billion euros. In return for the government loan, Adidas must cut the dividend as long as the loan runs. The share buyback will also be suspended, and the Management Board will waive all bonuses this year. This is usually around two thirds of the salary.

The company from Herzogenaurach had previously received massive public criticism because it wanted to suspend rents in some of its stores. Adidas then apologized and announced that it would pay the rent.


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