Adidas Opens Fraud Probe in China After Whistleblower Letter (2)

Adidas AG is investigating allegations of corruption in China after receiving an anonymous letter exposing potential compliance violations by some employees.

The German sportswear company is working with external legal counsel after receiving the letter on June 7, it said in an emailed statement.

It’s the latest blow for Adidas, which has had to deal with multiple crises in the last few years, including consumer boycotts in China and a significant hit to sales after severing ties with the rapper Ye. Chief Executive Officer Bjorn Gulden, who joined last year and visited China in September, is in the midst ...