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Adidas Group Claims For Breach Of Faith

2012/8/22 8:44:00 27

AdidasAdidas OEMOEM Collective ClaimT-Shirt

Since August Adidas Or after the news of the termination of cooperation with 300 foundries in China came out, the foundries finally turned from initial panic into actual action to jointly claim for compensation.


Recently, it was reported that many domestic companies produce sportswear T-shirt After more than ten years of OEM, they have recently received notice that they will successively terminate the OEM agreement and cooperation from October this year to April next year.


This repeated practice completely angered the foundry. 300 foundry factories decided to jointly ask adidas for an explanation, demanding to fulfill the promise and compensate the factory machinery and equipment.


"Unfortunately, even if the OEM chooses to protect its rights through legal means, it seems to have many difficulties. The first thing to bear the brunt is that there is no written contract." Although there is no written agreement, we have recordings. "


On July 19, Adidas confirmed that it had decided to close its only factory in China, Suzhou, because of cost pressure and other factors. It is understood that as early as last May, there was news that Adidas would close its Suzhou factory, but Eric Haskell, president of Adidas China's financial operations and direct head of Adidas Suzhou factory, specially convened dozens of suppliers to hold a symposium last November, denied the news that Adidas Suzhou factory was about to close, and promised that cooperation would not change before 2015.


It is obvious that Adidas' approach has discouraged many generations of factories. Although many factories claim compensation, Adidas' determination to terminate cooperation does not seem to waver.


"In August, September and October, according to the orders in previous years, there were at least 250000 pieces, while this year there were only more than 20000 pieces." Adidas OEM enterprise First, Jiang Liuhong, head of the procurement department of Shanghai Donglong Down Products Co., Ltd., told the media that 20000 pieces were just for Adidas to delay until October.


For this reason, the reporter interviewed Adidas Sports China Co., Ltd., the company's public relations personnel said that they would not accept telephone interviews and asked the reporter to send an email, but as of press release, the email did not reply.


  Adidas' attitude led to an impasse.


In this regard, the person in charge of the foundry said that legal channels would not be ruled out. "I haven't thought about going through legal channels with lawyers, but I just want to talk about it first. If I can't, I may ask a lawyer." Jiang Liuhong told the media. It is reported that a few days ago, representatives of several factories have sent an email to Adidas. Eric, the head of Adidas, replied by email that he would arrange a meeting in the near future.


Unfortunately, even if the foundry chooses to protect its rights through legal means, it seems to be faced with many difficulties. The first thing to bear the brunt is that there is no written contract. "Although there is no written agreement, we have recordings," stressed the head of a generation of factory.


Wu Junfeng, an industry lawyer, explained to the reporter: "In theory, recording does have legal benefits, but the legitimacy and effectiveness of its recording will be questioned."


Wu Junfeng also reminded SMEs that the law requires evidence, so to protect their legal rights, written contracts are the key. If there is no contract, we can only start from the trading habits, which will be very difficult to obtain evidence.

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