Adidas Seeks More Than 1 Billion Euros of State Aid

(Bloomberg) -- Adidas AG is seeking more than 1 billion euros ($1.1 billion) in German government aid as it grapples with the fallout of the coronavirus pandemic, people familiar with the matter said.

The sporting goods maker is in talks with German state-owned bank KfW about a financing package, according to the people, who asked not to be identified because the information is private. Adidas has been discussing a range of around 1 billion euros to 2 billion euros in loans, though the final amount and timing haven’t been decided, the people said.

Shares of Adidas fell as much as 4.9% Friday. They were down 3.9% at 2:55 p.m. in Frankfurt, making the company the worst performer on Germany’s benchmark DAX index, which was little changed.

Adidas said this week it’s reversing an earlier decision to not make April rent payments for its shops in Germany following a public backlash. Most non-food retailers in Europe’s largest economy are closed until at least April 20 to stop the further spread of Covid-19.

Chief Executive Officer Kasper Rorsted recently told a German newspaper that while the company won’t need direct government support, Adidas and the economy as a whole will need credit. A representative for Adidas declined to comment further. A representative for KfW also declined to comment.

The state-owned bank launched a loan program on March 23 to help companies facing a liquidity shortage. About 2,500 companies have applied for loans totaling 10.6 billion euros.

Tour operator TUI AG said last week it secured a 1.8 billion-euro loan from KfW in one of the biggest bailouts in Germany so far. Consumer electronics retailer Ceconomy AG is also among firms that are seeking to participate in the program, Bloomberg News has reported.

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