MOSCOW (Reuters) – Lego has ended its franchise agreement with the operator of its 81 stores in Russia, Inventive Retail Group (IRG) said on Tuesday, in a move that could spell the end of the Danish toymaker’s business in Russia.
IRG, which also manages the stores of other foreign companies in Russia, including Samsung and Nike, which also left the country, confirmed the termination of the contract with Lego.
The Russian version of the American monthly Inc. Magazine earlier reported on Tuesday that Lego was ceasing its commercial activities in Russia for an indefinite period and breaking its contract with IRG.
“Given the ongoing significant disruptions in the operating environment, we have made the decision to halt business activity in Russia indefinitely,” Lego Russia General Manager Yevgeny Chikhachev said as quoted by Inc. Magazine. .
“This includes ending the work of a large part of our Moscow team and our partnership with Inventive Retail Group.” Lego did not immediately respond to a request for comment.
“Our company will continue to work as an expert in the toy design and development category,” an IRG spokesperson said.
Lego halted shipments to Russia in March and said in June it was temporarily halting operations at some stores due to supply issues.
(Report Reuters; French version Kate Entringer)
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