Adidas has closed 11 franchised stores in Portugal, but not before seizing all their stock.
Adidas franchises are run by Valadri Desporto Unipessoal Lda, against which an injunction for breach of contract has been lodged.
Adidas went to court and on Wednesday was allowed to pounce in order to grab back its stock and list other products to assess their value.
The problem is the indebtedness of the franchisee which owes €4.5 million to the German multinational’s Portuguese subsidiary.
"The eleven stores from which the brand's products were taken are the responsibility of Valadri Desporto. Adidas Portugal has its own stores that are not part of this network today," according to a note sent out today by Adidas.
"Our own Adidas stores continue to work without any problems or constraints," a company source stated.
In all, eleven shops had their Adidas stock seized, shortly after opening for business today.
The bailiffs went inside and then shut the stores, removing all Adidas logos from the shop fronts while an inventory of all goods commenced.
"Adidas is working hard to find a quick solution in order to stay close to its customers," read a brief statement.
What's in a name...?
The name Adidas (written “adidas” by the company) is an abbreviation of the name of founder Adolf (“Adi”) Dassler. The Dassler family began manufacturing shoes after World War I.
At the 1936 Berlin Olympics, the American track-and-field star Jesse Owens wore shoes that were reportedly a gift from Adi Dassler. Owens’s medal-winning performances increased awareness of the Dassler brand around the world.
After the disruptions of World War II, Adi and his brother Rudolf (“Rudi”) strove to rebuild the Dassler firm, but a personal breach between the brothers had become irreparable by 1948. The business therefore split in two: Rudi’s company was eventually called Puma, while Adi’s became Adidas.
