Adidas to close down Reebok stores in India:Adidas to shut 1/3rd Reebok India stores

German sportswear maker Adidas has decided to shut down 300 of its 900 Reebok stores in the country in a move to restructure its business amid the financial irregularities discovered in its India operations.

Adidas Group chief executive officer (CEO) Herbert Hainer said on Thursday that the problems in India could lead to further charges of up to €70 million ($92 million) for the company, which needs to revamp its franchise model for Reebok India.

"The implementation of new commercial initiatives and terms could result in reduction of our Reebok franchise store base by about one-third as we focus on maximising our future returns in the market," Hainer said while announcing the group's earnings in Germany on Thursday.

At present, Rebook has about 1,000 outlets in the country.

Adidas, which on Monday had disclosed "commercial irregularities" to the tune of €125 million in Reebok India, said that the goal for the year 2013 is to begin with a clean sheet in the market.

Hainer, however, did not elaborate on the kind of commercial irregularities found in Reebok India. "Due to the sensitivity of the ongoing investigation, we cannot comment further than we already did on Monday," he said.

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