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• Lego had 81 stores in Russia, which were operated by Inventive Retail Group
Lego on Tuesday said it is shutting down its business in Russia indefinitely and laying off its 90 Moscow-based employees due to “extensive disruption” in the country.
The Denmark-based plastic toy brick maker has terminated its contract with its Russian franchisee Inventive Retail Group (IRG), which owned and operated 81 stores on Lego’s behalf.
“LEGO Group has decided to indefinitely cease commercial operations in Russia given the continued extensive disruption in the operating environment,” a Lego spokesperson told Reuters.
IRG, which also operated shops for Western brands such as Nike and Samsung, on Tuesday said the contract with Lego had been terminated, however, it also said, “Our company will continue to work as an expert in the toy design and development category.”
Lego paused its shipments to Moscow in March after Russia invaded Ukraine, and in June, the company announced it was temporarily freezing some stores due to supply issues.
Companies including Nike Inc (NYSE: NKE) and Cisco Systems Inc (NASDAQ: CSCO) have announced their departure from Russia in recent weeks.
French luxury good maker LVMH’s retail beauty brand Sephora on Monday said it is selling its Russian subsidiary to a local general manager of the chain.
Picture Credit: Reuters
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