Adidas receives €3 billion in government support
Approval of €3 billion ($3.3 billion) as assistance to German governments and banks was revealed by German sportwear giant adidas as the organization battles around the collapsed market amid lockdowns worldwide.
The assistance will come in the form of a unionized revolving credit line with the German state-owned bank KfW providing EUR 2,4 billion and the remaining EUR 600 million from the consortium of partner banks including Bank of America, Citibank, Deutsche Bank, HSBC, UniCredit, Standard Chartered Bank and Mizuho Bank, in compliance with a declaration from the group.
The company's shares are 22% down, with the announcement of first quarter results pushed to 27 April, following a revelation that the first quarter income from China would take a dive of $500 million.
Adidas said that due to the current financial situation, it will not be able to provide an forecast for 2020 and the Board of Directors has decided to avoid buying back stocks and to drop short and long-term incentives.