Nike won’t renew licensing agreements in Russia, the corporate mentioned Wednesday, becoming a member of a rising checklist of Western firms pulling again from the nation following the invasion of Ukraine.
The transfer impacts licensed retailers as Nike shuttered company-owned shops two months in the past quickly after Moscow despatched troops into the neighboring nation.
“As a consequence of operational challenges in Russia, Nike has made the choice to not renew or enter into any new enterprise commitments, together with with our franchisee Up&Run,” the corporate mentioned.
“Our enterprise stays on pause and we’re offering pay continuity to our workers.”
Nike’s assertion was in response to an AFP inquiry into the standing after Russian newspaper Vedomisti reported that Up & Run’s father or mother, Ingenious Retail Group (IRG), would shutter its retail places in Russia due to lack of entry to merchandise.
IRG’s web site reveals 37 Nike places, 9 of that are listed as “briefly closed.”
“As you possibly can see from our shops, deliveries are suspended and the products are briefly provide,” IRG spokeswoman Lyudmila Semushina informed AFP. “Within the present realities, we can not proceed to assist the work of Nike mono-brand shops and will likely be compelled to shut them.”
Nike’s transfer comes simply two days after Starbucks mentioned it was shuttering its 130 cafes within the nation, and final week, McDonald’s introduced its exit from Russia, the place it had 850 eating places using 62,000 employees.
Russia’s President Vladimir Putin ordered troops into pro-Western Ukraine on February 24, triggering unprecedented sanctions and sparking an exodus of overseas companies together with H&M, Adidas and Ikea.