Poland’s LPP sells its Russian company to a Chinese consortium

GMay 19 (Reuters) -Poland’s biggest clothing retailer LPP has decided to sell its Russian company RE Trading to a Chinese consortium, LPP said on Thursday, after holding talks with potential buyers.

LPP’s decision will end the group’s operations in Russia after 20 years in the market.

The company said in April that it had decided to sell its Russian-registered companies because of the “uncertain situation and inability to predict the course of the armed conflict”.

“The second Russian company, RE Development, will be shut down”, the company’s investor relations representative Magdalena Kopaczewska told Reuters.

LPP closed its Russian stores in March after Russia’s invasion of Ukraine.

The company said in mid-April that it was looking to strengthen its presence in the European Union.

Russian sales accounted for 19.2% of its group revenue for 2021/22.

(Reporting by Adrianna Ebert and Karol Badohal;Editing by Elaine Hardcastle)