SS Venture, a plant that makes Adidas products in the Philippines, was set to shut down by the end of November after Adidas said it was ending its business with the company because of low demand for the durable, rubber-soled shoes made there. The athletic company told factory management of its decision in June, and Vans USA was SS Venture’s only other customer. It couldn’t get financing to remain open beyond November, though Adidas hadn’t planned to end production until Dec. 31. Adidas said it would do what it can to help the 688 people who will lose jobs due to the closure.
This came while a U.S. senator called on the NBA to move its licensing deal to another company because of Adidas’ announcement in August that it was moving production of replica jerseys from New York to Thailand. The New York plant, American Classic Outfitters, signed a five-year contract extension with Adidas last year and agreed to devote 100 percent of its production to the jerseys. After the contract extension it invested about $1 million in an upgrade of its facilities. Chuck Schumer, senator from New York, has said he will ask the NBA to find another licensee.
American Classic Outfitters has about 100 employees, who made about half of Adidas’ NBA jerseys. It said it found out about Adidas’ decision about six weeks ago. Adidas says the move to Thailand is intended for the production to be closer to the sourcing for the fabric. It has two other factories in the U.S. that make the jerseys, and a total of 30 manufacturing facilities in North America.
