Media reports Sony, LG, Bosch abandoning Russia
Date
2/29/2024 6:38:32 AM
(MENAFN) In a significant development, global electronic goods manufacturers LG, Sony, and Bosch have initiated the closure of their single-brand stores in Russia, as reported by the news daily Kommersant on Tuesday. Representatives of these renowned brands confirmed the ongoing divestment, aligning with their earlier announcements to either exit the Russian market or suspend deliveries in response to Western sanctions linked to the Ukraine conflict.
Despite the earlier declarations, the brands' stores in Russia had continued operations until recently. LG's technical support confirmed plans to shutter all its Russian stores, citing a "halt in supply deliveries" as the primary reason for the decision. Similarly, Sony's support operator attributed the closures to a lack of supplies, noting that three single-brand stores in Moscow would remain open until summer to sell off remaining inventory. Bosch, too, has closed most of its stores, retaining only one open until the stock is sold.
According to a source from a large retailer, the delayed closure of these stores was influenced by long-term lease agreements with shopping malls. The tenant-landlord dynamics required a six-month notice period for termination, making it more practical for the departing vendors and their retail partners to fulfill their contractual obligations. The source explained that despite the cessation of official deliveries long ago, contractual obligations and potential fines played a role in the extended operation of these stores.
This move by LG, Sony, and Bosch highlights the complexities faced by global corporations navigating geopolitical challenges and sanctions. The divestment underscores the impact of international events on business operations and raises questions about the broader economic implications for both the departing companies and the Russian market. As these tech giants hasten their exit, the situation sheds light on the intricate dynamics between global economic pressures, corporate decisions, and contractual obligations in an increasingly interconnected world.
MENAFN29022024000045015687ID1107916462
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.