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Lego bricks symbol is viewed at a toy retail store in Bonn, Germany, September 5, 2017. REUTERS/Wolfgang Rattay
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MOSCOW/LONDON, July 12 (Reuters) – Lego is closing its small business in Russia indefinitely and laying off its 90 Moscow-primarily based staff members, owing to “extensive disruption” in the country, the Danish toymaker said on Tuesday.
Lego has terminated its contract with franchisee Creative Retail Team (IRG) which owned and operated 81 retailers on Lego’s behalf.
IRG, which also operated shops in Russia for Western makes this kind of as Nike and Samsung, claimed before on Tuesday that the agreement with Lego had been terminated.
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“LEGO Group has determined to indefinitely cease professional operations in Russia supplied the continued comprehensive disruption in the working environment,” a Lego spokesperson reported.
An IRG spokesperson mentioned: “Our business will continue to do the job as an professional in the toy style and development classification.”
Lego paused shipments to Russia in March and mentioned in June it was temporarily freezing some stores due to source troubles. read through more
The Russian variation of Inc. Magazine claimed before on Tuesday that Lego was stopping professional activities in Russia indefinitely and breaking off its agreement with IRG.
Firms together with Nike (NKE.N) and Cisco (CSCO.O) have declared their departures from Russia in new months as the speed of Western companies leaving accelerates after Russia sent troops into Ukraine in February in what it terms a “unique operation”. read through much more
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Reporting by Reuters and Richa Naidu in London Modifying by Jan Harvey and Bernadette Baum
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