Lego closes Russia business indefinitely, lays off 90 staff

Lego bricks brand is observed at a toy retailer in Bonn, Germany, September 5, 2017. REUTERS/Wolfgang Rattay

MOSCOW/LONDON, July 12 (Reuters) – Lego is closing its business enterprise in Russia indefinitely and laying off its 90 Moscow-centered staff members, owing to “comprehensive disruption” in the place, the Danish toymaker explained on Tuesday.

Lego has terminated its deal with franchisee Inventive Retail Group (IRG) which owned and operated 81 suppliers on Lego’s behalf.

IRG, which also operated outlets in Russia for Western models these types of as Nike and Samsung, claimed earlier on Tuesday that the deal with Lego had been terminated.

“LEGO Team has determined to indefinitely cease professional functions in Russia supplied the continued in depth disruption in the working atmosphere,” a Lego spokesperson said.

An IRG spokesperson mentioned: “Our company will continue to get the job done as an expert in the toy structure and development class.”

Lego paused shipments to Russia in March and stated in June it was temporarily freezing some outlets due to provide difficulties. go through far more

The Russian edition of Inc. Magazine documented before on Tuesday that Lego was halting business things to do in Russia indefinitely and breaking off its contract with IRG.

Firms including Nike (NKE.N) and Cisco (CSCO.O) have announced their departures from Russia in modern weeks as the tempo of Western companies leaving accelerates just after Russia sent troops into Ukraine in February in what it phrases a “specific operation”. browse extra

Reporting by Reuters and Richa Naidu in London Modifying by Jan Harvey and Bernadette Baum

Our Requirements: The Thomson Reuters Belief Rules.