Reebok franchisees seek clarity from Adidas CEO Herbert Hainer

Some 80 Delhi-based franchisees of Reebok have written to Adidas Group Global CEO Herbert Hainer, seeking his intervention to end the "high-handed" attitude of the new Reebok India management towards the franchisees.
They alleged the company has neither supplied any fresh stocks in the last four months nor shared any information about the new business model the company is planning.
"Please note that this behaviour is leaving us very insecure about what the company wants to do in the future," the dealers said in the letter. "We have been partners in the business for over 10 years or more and strongly resent this way of dealing with us." They pointed out that under the minimum guarantee arrangements, the company is also incurring losses through this approach.

"It seems the company wants to wind down the business as so many employees have been made to resign and we are insecure that stores/investments will not be settled," they wrote to Hainer.

The dealers said mall owners and landlords are raising questions about when Reebok retailers could clear their dues. Some franchisees who closed their operations have not been paid their dues for months despite repeated pleas, they said.

"We refuse to be victimised in this manner... Our livelihood is at stake as many of us have taken loans against mortgages for the money invested in Reebok India," the franshisees' letter said.

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