Polish clothing retailer LPP sells Russian business

People walk past a reserved shop of Polish fashion retailer LPP brand in Warsaw, Poland September 4, 2020. REUTERS/Kacper Pempel/File Photo

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GDANSK, April 28 (Reuters) – Polish clothing retailer LPP talks to potential buyers for its business in Russia, its second largest market, as it joins other Western firms leaving the country. Read more

The move follows the closure of its Russian stores in March after Russia invaded Ukraine.

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

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

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

The company, which has 533 stores in Russia, said in mid-April it was looking to boost its presence in the European Union. Read more

Sales in Russia accounted for 19.2% of its group revenue for 2021/22, while Ukraine accounted for 7.1%

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Reporting by Anna Pruchnicka and Karol Badohal; Additional reporting by Adrianna Ebert; Editing by David Goodman and Edmund Blair

Our standards: The Thomson Reuters Trust Principles.

Anne G. Cash