Deliveries stopped, and the goods themselves are in short supply.
- Nike has not renewed its franchise agreement with Inventive Retail Group (IRG), which owns Russia’s largest single-brand chain of retailer stores, according to a letter from IRG President Tikhon Smykov to employees. Vedomosti got acquainted with him.
- It follows from the letter that the American company will not be able to organize the supply of goods to the country “in the foreseeable future”, and as stocks are exhausted, IRG will be forced to close all its stores under this brand.
- An IRG spokeswoman confirmed that Nike supplies had been stopped and the product itself was in short supply: “In the current realities, we cannot continue to support the work of mono-brand stores and will be forced to close them.” IRG does not comment on relations with the American company.
- Nike said that due to operational difficulties, they decided not to renew existing or enter into new business relationships. Business activity in Russia has stopped, but the company continues to pay its employees, they added.
- A franchise agreement with Nike’s subsidiary in Russia has been concluded with Up and Run and A3 Sport (part of IRG), according to Rospatent. For both, it expires on May 26, as does another franchisee, Yar LLC (trades the Nike brand in Siberia). May 26 also expires the license.
- From March to May 2022, the number of Nike single-brand stores decreased from 116 to 56, of which 19 are temporarily closed, the newspaper writes. IRG operates 37 Nike outlets, of which nine are out of business. But the manufacturer’s goods can be bought in multi-brand stores, according to experts interviewed by the publication.