The coronavirus pandemic has caused serious damage to the economy of many companies globally. Large companies have also felt this economic impact, with Adidas being one of them. Therefore, the multinational company has decided to take a number of measures to strengthen financial flexibility.
In a statement published on the website, Adidas points out that it has suffered a significant decline in revenue in China, Japan and South Korea between January and February, in addition to losses in other countries around the world since mid-March.
For this reason, the company has received approval from the German government to grant a syndicated revolving credit line worth 3 billion euros.
The German State Development Bank (KfW) will lend the company a total of EUR 2.4 billion. The remaining EUR 600 million will come from a consortium of Adidas’ partner banks: UniCredit, Bank of America, Citibank, Deutsche Bank, HSBC, Mizuho Bank and Standard Chartered Bank.
“The current situation poses a serious challenge even for healthy companies. We thank the German government for its rapid and comprehensive course of action in response to this unprecedented global crisis,” said Adidas CEO Kasper Rorsted in the statement.