Nike not renewing franchise agreements in Russia

U.S. sportswear apparel producer Nike has not reestablished agreements with its biggest franchisee in Russia, the Vedomosti day to day covered Wednesday, denoting the most recent exit by a significant U.S. brand since Russian powers entered Ukraine.

Nike said on March 3 it would briefly suspend tasks at all its Nike-claimed and – worked stores in Russia in light of Moscow’s activities in Ukraine and has said that those actually open are worked by autonomous accomplices.

The head of Inventive Retail Group, which works Nike-marked stores in Russia through its auxiliary Up And Run, said Nike was done providing merchandise to Russia, Vedomosti detailed.

“As supplies of goods run out IRG will be forced to close all of its shops under this brand,” Vedomosti quoted IRG President Tikhon Smykov as saying in a letter to employees.

“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,” Smykov wrote.

IRG said it couldn’t remark on its relationship with Nike because of legally binding issues.

“As you can see from our shops, deliveries have stopped and goods are in short supply,” an IRG spokesperson said. “In the current realities we can not continue to support the operation of mono-branded Nike stores and will be forced to close them.”