Adidas AG (ADDYY  ) has reportedly initiated an internal probe into serious bribery allegations in its China operations following a whistleblower's claims, which detailed misconduct involving high-ranking officials within the company.

The accusations came to light through a whistleblower letter reportedly penned by Adidas China employees, which surfaced this June on Xiaohongshu, a popular Chinese social media platform, reported Financial Times.

This letter accuses certain Adidas personnel, including a high-level marketing manager, of embezzling substantial sums from the sportswear giant's significant annual marketing budget of €250 million, the report added.

The document details illicit financial dealings, including kickbacks from external service providers and huge bribes in the form of cash and assets like real estate received by another senior manager.

Despite the severe allegations, no accused Adidas staff members have been suspended as the investigation continues.

Amid these controversies, Adidas reiterated its commitment to stringent compliance with both legal standards and internal ethical policies across all operational regions.

The company has engaged external legal counsel to rigorously pursue the truth behind these claims.

The inquiry emerges during a turbulent period for Adidas in China, a market that once stood as its most rapidly expanding and profitable sector.

The brand faced significant setbacks from 2019 to 2022 due to stringent lockdown measures and a consumer boycott stemming from the brand's stance on sourcing materials from Xinjiang, amid accusations of forced labor practices in the region.

In response to these challenges, Adidas appointed a new CEO for its China operations in 2022, Adrian Siu, previously of Cosmo Lady.