Trainers titan Nike has become the latest US household name to exit Russia, as it confirmed it had not renewed agreements with its largest franchisee there.
According to the Vedomosti daily newspaper, Inventive Retail Group (IRG), which oversees Nike’s stores in Russia via the subsidiary Up And Run has confirmed Nike is no longer supplying goods to the country.
Nike announced it was temporarily suspending operations at all the Russian stores it owns and operates on 3 March, following Russia’s invasion of Ukraine.
“As supplies of goods run out IRG will be forced to close all of its shops under this brand,” IRG’s president Tikhon Smykov reportedly told employees in a letter.
“We started a joint business in 2012, we lovingly built up the best chain of stores in the country and ended up 10 years later in a situation where that business cannot exist,” the letter added.
The news of follows Starbucks formally quitting Russia earlier this month, with the coffee-seller stating it no longer has a “brand presence” in the country.
Starbucks announced the suspension of all its operations in early March, including the shipments of all its products there. It has roughly 2,000 employees in the country.
In a statement, its outgoing chief executive Kevin Johnson wrote a letter to its partners saying: “Starbucks has made the decision to exit and no longer have a brand presence in the market.
“We will continue to support the nearly 2,000 green apron partners in Russia, including pay for six months and assistance for partners to transition to new opportunities outside of Starbucks.”
What’s more, McDonald’s iconic golden arches have been pictured being removed from Russian regions this month.
The fast food giant agreed to sell its Russian stores across 45 regions and warned it was likely to make a $1bn loss.
The chain announced it entered into an agreement with an existing licensee Alexander Govor, who has operated 25 restaurants in the eastern region of Siberia since 2015, last week.
More than 60,000 staff are to be retained in Russia for at least two years on existing pay, but the restaurants will lose their menu, logo and branding, according to reports by the BBC.