'Domino's Pizza' failed to sell its business in Russia - files for bankruptcy
'Domino's Pizza' failed to sell its business in Russia (Photo: Getty Images)
DP Eurasia, the leading franchisee of the Domino's Pizza brand in Russia, has filed for bankruptcy. According to the company's statement, the owner could not sell their business in Russia.
"The Company today announces the initiation of steps by DPRussia's immediate holding company to file for DPRussia's bankruptcy," the statement reads.
What led to this?
This follows the announcement on December 28, 2022, confirming that the company was assessing its presence in Russia, the impact of sanctions, and its ability to continue serving its customers in Russia.
"In this connection, the Russian segment was classified as discontinued operations within the Company's audited financial statements for the year ended 31 December 2022," the statement says.
Failed business sale in Russia
The immediate holding company DPRussia is now forced to take this step, discontinuing the attempt to sell DPRussia as an ongoing business. This will consequently lead to the group's exit from Russia.
Domino's Pizza
An American company operates in the food service industry, managing the world's largest pizza restaurant network. The network is in 85 countries and comprises 15,900 restaurants, selling over 3 million pizzas daily.
The first Domino's Pizza branch in Russia opened in 1998 in Moscow, on Bauman Street. As of December 31, 2018, the company had 179 restaurants in Russia, with 78 operating under franchising and 101 company-owned.
International businesses exiting the Russian market
After Western countries imposed sanctions against Russia, several foreign brands decided to sell their companies in Russia. For instance, the French tire manufacturer Michelin sold its plant on Russian territory.
Similarly, Essity, a company engaged in hygiene and health products manufacturing, completed the sale of its assets in Russia.
