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Company Response

12 May 2012

Author:
adidas Group

Response to request for feedback on PT Kizone case in Indonesia

The salient facts are these:...The factory closed due to bankruptcy in March 2011, 2 months after the owner fled the country and 5 months after the adidas Group shipped its final goods...Bank creditors...forced the factory's closure...The factory premises have been bought, but the new owner has yet to re-open this business...The bankruptcy proceedings will result in some pay-out to workers...Our position is as follows: We do care about the situation facing the former PT Kizone workers and their families and have taken steps to assist [them]. The adidas Group will not...assume the...duties of the former...owner and pay severance to the workers...we have retained the services of a recruitment consultant to assist workers with job placement...We have also engaged with the Indonesian government and the South Korean Embassy regarding the flight of the PT Kizone owner...

Part of the following timelines

Indonesia: Clean Clothes Campaign urges adidas to contribute to severance payments owed to workers after its supplier factory Kizone closed - other brands have contributed

Indonesia: Workers Rights Consortium comments on adidas' communication to universities re alleged labour rights abuses at supplier factor, PT Kizone