Lego closes Russia business indefinitely, lays off 90 staff


MOSCOW/LONDON: Lego is closing its business in Russia indefinitely and laying off its 90 Moscow-based workers, owing to “in depth disruption” within the nation, the Danish toymaker mentioned on Tuesday.

Lego has terminated its contract with franchisee Inventive Retail Group (IRG) which owned and operated 81 shops on Lego’s behalf.

IRG, which additionally operated retailers in Russia for Western manufacturers comparable to Nike and Samsung, mentioned earlier on Tuesday that the contract with Lego had been terminated.

“LEGO Group has determined to indefinitely stop industrial operations in Russia given the continued in depth disruption within the working surroundings,” a Lego spokesperson mentioned.

An IRG spokesperson mentioned: “Our firm will proceed to work as an professional within the toy design and growth class.”

Lego paused shipments to Russia in March and mentioned in June it was briefly freezing some shops as a consequence of provide points.

The Russian model of Inc. Magazine reported earlier on Tuesday that Lego was stopping industrial actions in Russia indefinitely and breaking off its contract with IRG.

Companies together with Nike and Cisco have introduced their departures from Russia in latest weeks because the tempo of Western companies leaving accelerates after Russia despatched troops into Ukraine in February in what it phrases a “particular operation”. – Reuters

Source link