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Polish clothing retailer LPP to sell Russian business

Published 04/28/2022, 08:26 AM
Updated 04/28/2022, 12:01 PM
© Reuters. FILE PHOTO: People walk outside a Polish fashion retailer LPP brand Reserved shop in Warsaw, Poland, September 4, 2020. REUTERS/Kacper Pempel/File Photo

GDANSK (Reuters) -Polish clothing retailer LPP is talking to potential buyers for its business in Russia, its second largest market, as it joins other Western firms quitting the country.

The move follows the closure of its Russian stores in March after Russia's invasion of Ukraine.

LPP said it had decided to sell its Russian-registered companies because of the "uncertain situation and inability to predict the course of the armed conflict", adding that it was in talks with potential buyers and was considering offers.

LPP said it was staying in Ukraine, where it resumed operations in recent weeks after halting them due to the war and was now running a third of its stores in a limited capacity, mostly in west of the country.

LPP's plans to sell its Russian business were first reported by Russia's TASS news agency.

© Reuters. FILE PHOTO: People walk outside a Polish fashion retailer LPP brand Reserved shop in Warsaw, Poland, September 4, 2020. REUTERS/Kacper Pempel/File Photo

The company, which owns 533 stores in Russia, said in mid-April it was looking to strengthen its presence in the European Union.

Russian sales accounted for 19.2% of its group revenue for 2021/22, while Ukraine accounted for 7.1%

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