Indian newspapers report that a group of Reebok retail franchisees is protesting about the new trading terms proposed by the Adidas Group as part of its cleanup measures for Reebok India, arguing that they are not viable for the retailers. The Adidas Group is striving to alter its relationship with Reebok India's franchisees, after it found alleged irregularities that could cost the company up to €125 million. The group has already announced that the changes should lead to the closure of about one-third of Reebok's mono-brand stores in India. It wants to move from a model involving a minimum guarantee to another in which the franchisees firmly buy the merchandise at a discount. The franchisees reportedly have until the end of August to accept the new terms or face a halt in deliveries that would force them to close their stores. Another part of the cleanup measures involves a voluntary retirement scheme for Reebok India employees, and the integration of the sourcing activities for the Reebok and Adidas brands in India.

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