Adidas apologises after backlash over refusing to pay rent amid coronavirus scare
The German sportsgear maker said they paid their landlords the rent for April.
By PTI | Updated:
AFP
Adidas said it had made 'a mistake' when it decided not to pay rent on its shuttered shops in April.
FRANKFURT AM MAIN: German sportsgear maker Adidas on Wednesday said it had made "a mistake" when it decided not to pay rent on its shuttered shops in April, after the move sparked a widespread outcry. Adidas was one of a string of retailers in Germany that said they wouldn't be paying their landlords while their stores are closed as part of efforts to stem the coronavirus spread. "We made a mistake and we lost a lot of trust," the firm said in a letter on its German website.
"We would like to wholeheartedly apologise. We have paid our landlords the rent for April." Adidas, which made a net profit of nearly two billion euros ($2.2 billion) in 2019, has been hard hit by a slump in Chinese sales and store closures around the world.
But it faced massive criticism when it emerged last week that the group was planning to suspend rent payments as it grapples with the fallout from the coronavirus crisis.
Similar announcements have also come from Swedish retailer H&M, Adidas rival Puma, shoe chain Deichmann and electronics retailers Saturn and Media Markt.
The move comes after the German government unveiled a major rescue package to protect companies and jobs from the brutal economic impact of the pandemic.
In its letter, Adidas said it had taken several steps to stop the bleeding.
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It includes a provision that temporarily shields tenants from being kicked out of their homes or business premises if they experience financial hardship over the coronavirus measures. But Germany's leading politicians urged financially sound companies not to take advantage of the situation, saying it showed a lack of solidarity at a time of crisis. Finance Minister Olaf Scholz called the planned rent freezes by large retailers "irritating" while Justice Minister Christine Lambrecht said it was "indecent and unacceptable". German MEP Katarina Barley tweeted that she had bought her last pair of Adidas trainers, in a post that received over 9,000 likes.
CEO Kasper Rorsted on Sunday sought to calm the waters by saying that the bulk of Adidas's German landlords were "large real estate companies and insurance firms". He had insisted that Adidas's small, private landlords would continue to receive their rent.
But the ongoing furore eventually prompted the company to ditch the rent freeze altogether.
In its letter, Adidas said it had taken several steps to stop the bleeding, including scrapping a share buy-back programme and slashing executive pay.
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In Germany, it has put some 1,200 workers on reduced hours whose pay will be topped up by the government's aid package. The company added that it was also seeking to contribute to the fight against the pandemic by supporting aid organisations and producing face masks.
Empty Mecca, No Devotees At Siddhivinayak: The World Turns Into A Ghost Town Post-Coronavirus Outbreak
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The COVID-19 pandemic has not only severely impacted global health but has changed how our world looks completely. Biggest metropolitan cities which were known for their fast-paced lifestyle have now come to a standstill. Well-known tourist spots and religious sites - be it the New York Times Square or the Holy Mecca - which were thronged by devotees and tourists, now lie deserted.
Several netizens have called the phenomenon ‘earth taking a break’. The images of the deserted streets appear eerily similar to a post-apocalyptic world.
Here are some images which show how the world has changed after the coronavirus outbreak.
The COVID-19 pandemic has not only severely impacted global health but has changed how our world looks completely. Biggest metropolitan cities which were known for their fast-paced lifestyle have now..
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The Holy Mecca in Saudi Arabia is a site of monumental importance in Islam. The holy site, Kaaba, the cubic building which used to be surrounded by devotees offering prayers, now lies deserted.
Saudi Arabia announced on Tuesday that mosques would no longer accept worshippers for the customary five daily prayers or the weekly Friday prayer, exceptional measures intended to help limit the spread of the coronavirus.
The crowd, however, has reduced and only a small number of worshippers are performing the ritual called ‘Tawaf’ where they circumambulate the Kaaba.
The Holy Mecca in Saudi Arabia is a site of monumental importance in Islam. The holy site, Kaaba, the cubic building which used to be surrounded by devotees offering prayers, now lies deserted.Saudi ..
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Italy is one of the countries besides Iran and South Korea that is the worst affected by the pandemic. The country is in a state of lockdown and most are quarantined in their homes.
For the unversed, the city of Venice is known for the popular gondola rides and its canals. A Twitter user recently posted the images of swans which have returned to the canals in the wake of reduction in traffic.
The user also shared images of ducks making an appearance in the fountains of Rome and have found a new home.
Italy is one of the countries besides Iran and South Korea that is the worst affected by the pandemic. The country is in a state of lockdown and most are quarantined in their homes.For the unversed, ..
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The iconic New York Times square is known for its giant hoardings, billboards and gigantic displays. It is often thronged by a large number of tourists and New Yorkers, but amid the COVID-19 outbreak, it lies deserted.
The images look eerie particularly because New York, known as the ‘city that never sleeps’, seems to have come to a halt.
The Big Apple is also known for its nightlife, bars and restaurants, which also seem to have come to a standstill.
The iconic New York Times square is known for its giant hoardings, billboards and gigantic displays. It is often thronged by a large number of tourists and New Yorkers, but amid the COVID-19 outbreak..
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The epicentre of the coronavirus outbreak, Wuhan, lies deserted even after 3 months of the outbreak. Over the last few days, drone footage from the Chinese province has surfaced, which shows the virtually empty town, with deserted streets and markets.
The scary images seem to be taken from a dystopian film and shows how the lines between the real and the reel are often blurred.
The epicentre of the coronavirus outbreak, Wuhan, lies deserted even after 3 months of the outbreak. Over the last few days, drone footage from the Chinese province has surfaced, which shows the virt..
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India, too, has been hit by the coronavirus pandemic with over 166 cases and 3 deaths reported. Maharashtra, which has the highest number of cases, is also the home to Siddhivinayak Temple, which is usually crowded with devotees.
However, recently, a large number of police personnel have been deployed at the temple and the entry to the temple has been shut.
India, too, has been hit by the coronavirus pandemic with over 166 cases and 3 deaths reported. Maharashtra, which has the highest number of cases, is also the home to Siddhivinayak Temple, which is ..
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European countries, including the UK have been severely affected by the pandemic. As the authorities consider partial lockdown in London, the city and its iconic bridges no longer witness the same footfall.
The Tower bridge and Millennium Bridge lie deserted with virtually no people.
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