The Polish clothing group LPP SA has withdrawn from Russia after twenty years. On Thursday, the parent company of brands including Reserved, Cropp and Mohito announced that it had sold its Russian subsidiary RE Trading OOO to a Chinese consortium. This was preceded by negotiations with several interested parties, according to a statement. As part of the transaction, the new owner did not acquire any trademark rights from LPP, but may carry out clearance sales of stocks owned by the Russian company, the group said.
With 553 branches, Russia was the clothing supplier’s second largest market after Poland. At the beginning of March, LPP temporarily suspended its activities in the country following the Russian invasion of Ukraine. At the end of April, the company announced that it wanted to sell its Russian companies in view of the ongoing uncertainties caused by the war and that it would start talks with potential bidders. LPP has already made the necessary write-downs and value adjustments on all assets and inventories in Russia.