Polish retailer’s stores in Russia transferred to companies from the UAE
Emirati-based FZCO will own the Russian outlets of the Reserved, Cropp, House, Mohito and Sinsay brands. Their previous owner, Polish LPP, stopped deliveries to Russia
The Russian stores of the Polish retailer LPP SA, which owns the Reserved, Cropp, House, Mohito and Sinsay brands, have become the property of Far East Services, FZCO, registered in the UAE. RIA Novosti writes about this with reference to the Unified State Register of Legal Entities. Judging by them, now 95% of the business belongs to FZCO, and 5% went to the CEO of LPP S.A. in Russia Anna Pilyugina.
Shortly after the Russian invasion of Ukraine, the Polish chain LPP cut off supplies to the country and then closed stores. Now this network includes more than 2.2 thousand outlets around the world.
However, in May it became known that LPP stores were returning to work in Russia under new names. So, Reserved was called Re, Mohito – M, and Sinsay – “Sin”. Then it was reported that the retailer was selling the Russian company to a Chinese consortium and leaving the country, and the buyer would not acquire the rights to use the names and trademarks of clothing brands owned by LPP SA.
Earlier, Izvestia reported that Zara stores could resume work in Russia under a different brand, which would be consonant with the real name. The company considered the option of returning to trading, but through a partner in Russia or by re-registering the business to a new legal entity. “As in the case of McDonalds and Pandora, the Zara business can be transferred to a headquarters partner, it will be he who will sell the company’s goods of the same name in Russia, but under a different sign,” said a source in the consumer market.
In May, it became known that well-known Turkish clothing brands are ready to open their outlets in Russia. We are talking about the brands adL, Mudo, LTB, Twist and İpekyol, each of which is ready to open at least 100 stores in Russia.
In early March, many major foreign brands announced the termination of their activities in Russia. Many of them put on pause business in the Russian Federation. Among them are Nike, Adidas, Lego, Apple, Samsung, Inditex and others. In the automotive industry, Skoda, Volvo, BMW, Audi, and so on have suspended work with Russia. Some companies sell their business to Russian owners. So, in particular, did McDonald’s or the French Renault, which transferred the Moscow plant to the city authorities for a small fee.