T
he Russian arm of quick meals chain Domino’s is prone to shut after its London-listed guardian firm determined to place it into chapter 11.
Apparently failing to discover a purchaser for the Russian enterprise, DP Eurasia mentioned it has determined its subsidiary ought to as an alternative file for chapter.
The franchisee runs round 170 Domino’s pizza websites within the nation, and had beforehand mentioned it was “evaluating its presence” there.
The Russian economic system has been hit by sanctions since President Vladimir Putin launched an unprovoked full-scale assault on Ukraine in February 2022, a continuation of the Kremlin’s marketing campaign in japanese Ukraine and Crimea which began in 2014.
Although DP Eurasia has not been named by Ukraine as one of many International Sponsors of War – an inventory which incorporates companies reminiscent of Unilever, Procter & Gamble, Yves Rocher, and Mondelez – it has confronted criticism for persevering with to do enterprise in Russia.
Late final 12 months the corporate was named and shamed within the House of Commons for its ongoing presence within the nation.
DP Eurasia mentioned on Monday: “The company today announces the initiation of steps by DP Russia’s immediate holding company to file for DP Russia’s bankruptcy.
“This is preceded by the announcement on 28 December 2022, which confirmed that the company was evaluating its presence in Russia, the impact of sanctions, and its continuing ability to serve its customers in Russia.”
It added: “With the increasingly challenging environment, DP Russia’s immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DP Russia as a going concern and, inevitably, the group’s presence in Russia.”
DP Eurasia has Domino’s franchise websites in Turkey, Russia, Azerbaijan and Georgia. In Turkey it’s the largest pizza supply chain, with 673 websites, and it’s the third-largest in Russia.
