VILLA HIDALGO YALALAG, Mexico (Reuters) -Adidas executives visited a small Indigenous town in the mountains of southern Mexico on Thursday to offer an apology over a sandal-inspired shoe design that Mexico's government had blasted as cultural appropriation.

The German sportswear company sent representatives from its Mexican unit to Villa Hidalgo Yalalag, a town in Oaxaca state, to deliver the comments in person after issuing a written apology last week.

The issue related to the "Oaxaca Slip On," designed by Mexican-American designer Willy Chavarria, which locals say closely resembles their traditional handmade huarache sandals.

"We understand this situation may have caused discomfort, and for that reason, we offer a public apology," Karen Gonzalez, head of Legal and Compliance at Adidas Mexico, told a few dozen people gathered at an outdoor sports field.

The event included traditional music and attendees in Indigenous attire.

Gonzalez said Adidas would in future seek collaboration with Villa Hidalgo Yalalag to ensure respect for its cultural heritage. The community is home to fewer than 2,000 people.

"Thank you very much for keeping your word," said Mayor Eric Fabian. "(Our cultural heritage) is something we safeguard very carefully. Yalalag lives from its crafts," he added.

The controversy drew national attention earlier this month when Mexican President Claudia Sheinbaum criticized Adidas and announced plans to explore legal avenues to protect Indigenous communities from alleged cultural appropriation by big companies.

Mexico has previously accused other big-name global fashion players of exploiting Indigenous designs without consent.