Adidas Is Also Seeking Government Assistance.

On April 3rd, according to people familiar with the matter, Adidas sought more than 1 billion euros ($1 billion 100 million) of German government aid to cope with the impact of the new crown virus epidemic.

Adidas, who was asked to be anonymous because of undisclosed information, said that Adidas was consulting with a German state-owned bank on a financing plan. They said Adidas has been negotiating about 1 billion -20 billion euros in loans, but the final size and time have not yet been decided.

In March 11th, Adidas announced that its sales in the first quarter of 2019 will be reduced by 800 million to 1 billion euros due to the epidemic, while net profit will be reduced by 400 million to 500 million euros, and the two market performance of Japan and Korea will also decline. Last month, the brand admitted that its sales in China fell by 85% since the lunar new year in January 25th due to the closure of most stores, while the volume of passenger traffic in Japan and South Korea decreased significantly.

Adidas has about 1.2 stores in China, most of which are franchised stores, and there are nearly 500 outlets. The brand has nearly 1/5 products produced by Chinese factories. The Greater China market accounts for about 20% of Adidas's global sales, Reuters reported.

Now, with the epidemic spreading further in the world, especially in Europe and the United States, Adidas announced in March 17th that it would temporarily close Adidas and Reebok stores in Europe and North America, in order to contain the spread of the new crown virus. European stores will be closed in from March 18th to 29th, and stores in the US and Canada will be closed in from March 17th to 29th.

Today, there are no signs of any relief, and these stores are still closed. Under such circumstances, Adidas has been helpless to seek government assistance.