Corporate affairs ministry to take final view on Reebok scam


Corporate affairs ministry to take final view on Reebok scam

7 Nov 2013

After the Law Ministry has expressed its views

on the Serious Fraud Investigation Office (SFIO) probe report submitted in August on alleged Rs 850 crores scam at Reebok India, Corporate Affairs Ministry has decided to take a final decision on the issue. According to industry insiders, the report has found violations by the Indian as well as overseas management personnel at Reebok.

Caught amidst the alleged Rs 850 crores fraud by its former MD Subhinder Singh Prem and COO Vishnu Bhagat, made public by the Adidas last April and unhappy Reebok franchises, German sports major Adidas, which acquired Reebok in 2006, recently brought a new managing director, Erick Haskell on board to revive the brand in India. But media reports also suggest that the Reebok brand might make an exit from the country given the current circumstances.

After getting Haskell on board, group company Adidas has been taking all measures to change Reebok’s tainted image in the country. It recently roped in two new brand ambassadors: Bollywood actors John Abraham and Nargis Fakhri in a bid to promote the brand as fitness label. Reebok also recently opened a 2,800 square foot fitness store at Forum Mall in Chennai as a part of its retail expansion plan.