Adidas suspishes its agreement with Nike and its apparel business after a report that the company was “a sexual harassment and/or discrimination problem in the workplace.”
The suspension of the deal follows an investigation that uncovered numerous instances of sexual harassment by former employees, the Wall Street Journal reports.
The company will have to pay $6 million in back pay to women and $1 million to employees who worked for the brand for the past four years.
“This was not a one-time issue, it was a systemic problem and we have taken significant action to address it,” a spokesperson for Adidas said in a statement to the WSJ.
The suspension comes amid a larger issue with the company.
The sports apparel giant, which also makes athletic shoes, has been under fire since reports that former employees had been fired for inappropriate behavior, according to the Wall St Journal.