Adidas America is facing almost $400,000 in penalties for safety violations at an Orange County, New York, warehouse, according to an Aug. 9 news release from the Occupational Safety and Health Administration.
The fine stems from a 2021 OSHA inspection that found a lack of guardrails and an unsafe ladder at one of Adidas’ warehouses exposed employees to potential falls of up to 10 feet. The government agency said it returned in early 2024 to inspect the facility again and found the safety hazards had not been addressed.
“When employers agree to correct a hazard, they must follow through and prove to OSHA that the hazards were addressed,” OSHA Area Director Rita Young said in a statement. “Adidas America Inc. failed to do so, continued to expose their employees to potentially deadly and disabling injuries and are now liable for additional and sizable OSHA penalties.”
The activewear brand’s American business has 15 days to respond to OSHA’s fine, whether they comply with or contest the findings.
“Adidas is committed to the health and safety of our employees,” an Adidas spokesperson said via email. “Our facilities fully adhere to OSHA compliance requirements, and we are working with OSHA to resolve the matter.”
The worker safety penalty comes shortly after Adidas posted a strong second quarter, with sales up 9% and the underlying business improving as it sheds off the final remnants of its Yeezy merchandise. While the company’s business is showing signs of strength after a tumultuous period, North America sales were still down 7% in the quarter due to the impact of Yeezy.
With the loss of that celebrity collaboration, CEO Bjørn Gulden has developed another plan to win in the region, which includes developing products that are more catered to the U.S. audience and leaning into more American sports like baseball and basketball.
“You have to be more American to be successful in America. You have to be in the American sports,” Gulden said on an earnings call in July. “There is a clear, clear, clear plan for how to be more American in America and our product pipeline and our marketing activities are lined up to do that … We have tough competition in the U.S. from American brands, and we have to be better than what we have been before to be successful.”