adidas Looks for Over €1 Billion EUR in State Aid During Coronavirus Fallout
As its brick-and-mortar locations remain closed.
With hundreds of stores closing their doors across the world due to the coronavirus outbreak, adidas is now facing the effects. The German company is in the talks with German state-owned bank KfW for a range of about €1 to €2 billion EUR in loans. Shares of adidas fell as much as 4.9% today, making the company the worst performer on Germany’s benchmark DAX index, Bloomberg reported.
The state-owned bank launched a loan program back in March to help companies facing a liquidity shortage. Almost 2,500 companies have applied for loans, totaling €10.6 billion EUR. While adidas’ CEO Kasper Rorsted recently said that the company will not need to seek direct government support, uncertainty lies ahead, as the final amount and timing haven’t been decided for the loans. adidas also announced this week it would reverse an earlier decision to not pay rent on its shuttered shops in Germany after drawing widespread criticism.
