Chinese suppliers are airing their dissatisfaction with the compensation offered by the German sports wear giant adidas AG, China Business News said on Wednesday.
In August this year, adidas announced it was shutting down an apparel operation in Suzhou, in Jiangsu province, as well as terminating contracts with five suppliers in the country in an attempt to become more efficient by restructuring its business in China.
Sabrina Cheung, corporate communication director for adidas Greater China, said adidas gave its suppliers fair legal notice of its intent to terminate the business contracts it has with them. She said the company has fulfilled all of its contractual obligations but will nonetheless offer its partners advice pertaining to their communication and transition plans.
But according to China Business News, suppliers are not satisfied with the compensation, especially because machines and software systems were tailored for adidas.
Those companies have been working with adidas for several years. In 2011, they delivered about 8 million garment pieces to adidas, said Sun Yingli, general manager of Shanghai Manlang Textile Co Ltd, one of the suppliers.
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