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1 Apr 2024

Polish clothing brand LPP sold its business in Russia to shell co. to stay on market, new investigation shows; incl. co. response

A new investigation by Hindenburg Research claims that despite LPP's announcement of divestment of its Russian busienss after the full-scale invasion of Ukraine, its products are still available on Russian market because the sale process had been done through a shell company.

In April 2022 the Polish clothing brand announced divestment from Russia and in June 2022, the company finalised the sale of its business to an unnamed buyer. However, the authors of the investigation mention that the purchase of LPP's business in Russia was done by Dubai "Far East Services" company with no disclosure of directors and/or owners. Moreover, secret shoppers who visited the shops in Moscow and St. Petersburg in December 2023 claim that the products available there are identical to the LPP's ones and even the product codes were the exact match of the Polish ones.

Business & Human Rights Resource Centre invited LPP to respond. The response is available below.