March 11, 2009

Creditors sue Adidas shoe producer

Creditors filed complaints against a producer of Adidas shoes in Jakarta, Indonesia, claiming the company had not paid its bills, court papers show.

Leather supplier CV Cisarua and the Bank of Negara Indonesia filed charges against PT Prima Inreksa Industries, The Jakarta Post reported Wednesday.

The litigation is our last resort, said CV Cisarua attorney Yakobus Eko Adrianto.

Negotiations over the issue have always ended with the company claiming they cannot pay their bills, Adrianto said.

But, Adrianto noted that the shoemaker still employs about 5,000 workers and is still producing shoes.

"They don't have reasons to avoid their obligations, Yakobus said.

Adidas ordered 201 million pairs of shoes from Indonesian manufacturers in 2008, including 500,000 pairs a month from PT Prima Inreksa Industries, the Post said.