British cosmetics manufacturer and retailer Lush plans to close all of its remaining stores in Russia, national daily Kommersant reported on Tuesday, citing three retail real estate consultants.
Lush plans to only maintain its online store for a time in order to sell off warehouse inventory, one of the consultants said.
Lush halted shipments of its products to Russia as well as online sales in early March.
Lush stores in Russia and Ukraine are operated under license by a partner. Both companies are 65% owned by a Russian citizen.
The owner of 65% of Lush Russia LLC is Dmitry Azarov and the other 35% is owned by the British company, data from the SPARK-Interfax show.
The chain in Russia had 48 stores. As of July 11, 27 outlets remained open, Kommersant said.
The paper cited a source close to Lush Russia as saying that the company is in the process of liquidating. The chain's owners could not arrange for shipments of product to the country, the source said. The last purchased shipment got stuck in Riga and never made it to Russia.
Lush has been working on the Russian market since 2001. Lush Russia saw its net profit jump 160% to 95.55 million rubles in 2021 on revenue up 33.2% to 1.55 billion rubles, SPARK data show.
