Adidas Adidas Chain of branded stores

2023

Seizure of assets worth 3.5 billion rubles

In October 2023, the Moscow Arbitration Court arrested the accounts of the Russian division of Adidas for 3.5 billion rubles. Interim measures were taken in the case at the suit of Amusement Park, which requires the recovery of the specified amount from Adidas LLC.

According to RIA Real Estate, citing a published court ruling, the plaintiff demands to recover from the Russian subsidiary of the German manufacturer of sportswear and footwear about 420 million rubles of the principal debt, 1.7 billion rubles of the penalty, about 1.4 billion rubles of losses, as well as penalties on the date of actual fulfillment of obligations.

The Arbitration Court arrested the accounts of the Russian division of Adidas

Adidas suspended all its stores and online sales in Russia in March 2022. One of the retailer's stores was located in the Dream Islands shopping area; by mid-October 2023, it was marked as closed in Yandex Maps.

According to the decision of the Moscow Arbitration Court, "the defendant, although he is a Russian legal entity, was fully controlled by a legal entity that is a resident of an unfriendly state," and the parent Adidas AG previously announced that stores in Russia would close on March 14, 2022.

The court also noted that "the seizure of funds... only affects a certain amount held (or received) in a bank account.

Cash in excess of this amount is not the subject of interim measures and can be used by the defendant to carry out entrepreneurial activities, the definition says.

Preliminary hearings in the case are scheduled for November 13, 2023.

Telegram channel Mash on June 9, 2023 announced that Adidas was preparing to return to the Russian market a year after the announcement of its departure. According to the channel, the opening is planned for November 1, 2023. However, the company itself subsequently denied the retailer's return to the Russian Federation.^[1]rubles

Lamoda opens first offline stores, taking up Adidas space

At the end of August 2023, Lamoda announced the opening of its sporting goods stores. Some points will be located on the site of the closed stores of the Adidas chain. Read more here.

2022

Loss of €100 million per quarter from a business stop in Russia

In the third quarter of 2022, Adidas lost more than 100 million euros in revenue due to the suspension of business in Russia. The company itself named this figure on November 9, 2022 as part of the publication of its financial statements.

According to the published materials, in July-September 2022, Adidas's net profit was 66 million euros against 479 million euros in profit a year earlier. This tangible decrease was largely due to one-time expenses worth almost 300 million euros. Most of these costs are related to the company's decision to curtail its activities in Russia.

Adidas lost €100 million per quarter due to business shutdown in Russia

Adidas stores have been closed for a long time - from the spring of 2022. Accordingly, all this time the seller is being put up for rent, which means that the retailer is suffering losses, Pavel Lyulin, vice president of the Union of Shopping Centers, told Izvestia at the end of October 2022. Cost optimization is a logical management decision, especially as it is not yet clear whether Adidas will remain in Russia or sell the business, the retailer may also leave the country, the expert added. In addition to staff reductions, the closure of ineffective points will allow the network to record losses at the current level, he said.

Nadezhda Tsvetkova, a trade real estate broker, director, head of the rental department of CORE.XP retail premises, told the newspaper that Adidas at the end of October 2022 began to abandon in Russia "informal stores and weak in terms of turnover." According to the company's own data, in the Russian Federation, the German company by the end of October 2022 developed about 800 stores. How many of them can be completely closed, refusing to rent, the publication did not specify.

The market value of Adidas over the past three months has decreased by 29% (to 20.9 billion euros), Interfax notes on November 9, 2022.^[2]

Leaving Russia

In September 2022, it became known that Adidas did not pay 10 billion rubles in taxes and left Russia amid sanctions imposed by the EU after the outbreak of the conflict in Ukraine.

2020

In Russia, unlike the rest of the world as a whole, the Adidas trademark is much more famous than its competitors, perhaps due to the fact that Adidas has been imported into the USSR since 1979. It is also caused by the prevalence of Chinese counterfeits of this brand.

Popularity of brands in Europe at the end of 2020

2008: Partnership Agreement with the Russian Football Union

Adidas is one of the most important advertisers, focusing on TV ads featuring such world stars as Del Piero, Kaka, Lionel Messi, Frank Lampard, Steven Gerrard, David Beckham, Arjen Robben, Magdalena Neuner, Lucas Podolski, David Villa, Michael Ballack, Ana Ivanovic, Marat Safin, Kevin Garnett, Tracy Novak, McGrayt et al.

Adidas is also widely known for its large sponsorship contracts with famous athletes and sports teams, especially in the field of football. Adidas has signed sponsorship contracts with such famous football clubs as, Milan, FC Bayern München, Real Madrid, FC Chelsea, Dynamo Kyiv, Lokomotiv, FC Liverpool and others, as well as with Russian, Spanish, German, Greek, Mexican, Romanian, Japanese, Argentine, Ukrainian, Nigerian, Danish, Paraguayan, Slovak, South African, Israeli, Liechtenstein, Andorian, Cypriot, Scottish national teams.

On September 8, 2008, Adidas signed a partnership agreement with the Russian Football Union. According to the Vedomosti newspaper, the total amount of the agreement concluded for a period of 10 years will be $100 million. It is expected that the German company will equip all football teams of the country, as well as deduct to the RFU 5% of the proceeds from the sale of sports goods with the symbols of the Russian national team .

2005: Design Awards

The Adidas Industrial Design Department, led by Michael Michalski, was selected by the 2005 design team in the "product design" nomination for the "Red dot award"]. On July 4, 2005, Michael Michalski arrived in Essen to receive the red dot: design team of the year trophy - the Radius Cup on behalf of the entire design department. The award was presented by last year's winner Kiyoyuki Okuyama, who represented the Pininfarina design team.

Interesting facts

The Adidas shoes were won by Mohammed Ali, Joe Fraser, Steffi Graf and Stefan Edberg, Bob Bimon and Gunde Swan, Lev Yashin and Valery Borzov, Michel Platini and Eisebio, Zinedine Zidane and David Beckham, Marat Safin and Vera Zvonaryova, Lionel Messi and many other athletes. Many of these people have a contract with the company.

New metal band KoRn has the world famous song A.D.I.D.A.S. After the release of this hit, the music that the group sings began to be called Adidas rock. For several consecutive years, the Korn lead singer also dressed exclusively in Adidas sportswear.

The equally famous hip-hop group Run DMC in 1986 wrote the song My Adidas, which became the unofficial anthem of fans of the company's products. In addition, the company logo appeared on the clothes and shoes of various artists - from Public Enemy to the late Jam Master Jay from the same Run DMC.

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