Nike announces permanent exit from Russia
By Sanjay Maurya
American sportswear maker Nike is making a full exit from Russia, three months after suspending its operations there, the company said in an emailed statement on Thursday (June 23). Nike joins the likes of Renault and McDonald’s in making complete exits from the Russian market. More companies are expected to depart in the coming weeks ahead of the new law.
Nike
Footwear manufacturing company
- Founded: 25 January 1964, Eugene, Oregon, United States
- CEO: John Donahoe (Jan 2020–)
- Headquarters: Beaverton, Oregon, United States
- Revenue: 3,740 crores USD
- Founders: Phil Knight, Bill Bowerman
- Subsidiaries: Converse, RTFKT Inc., Nike Vision, NIKE Cortez, MORE
Foreign companies seeking Russia’s exit over the war in Ukraine face the prospect of new laws being passed in the coming weeks, allowing Moscow to confiscate assets and impose criminal penalties. This has encouraged some businesses to accelerate their departure.
“Nike has made the decision to leave the Russian marketplace. Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming days,” Nike said in an emailed statement.
It also said that the country’s website and the app would no longer be accessible. The largest franchisee in Russia, Inventive Retail Group (IRG), which runs 37 Nike-branded stores in the country through its subsidiary Up and Run, was reportedly not renewed by Nike, according to Russian media in May.
Other sportswear manufacturers have also reduced production. Rival Adidas said in March that it would close its retail stores in Russia and halt online sales. In March, Puma also stopped operating. In March, Reebok put a halt to sales. Currently, the company is in negotiations to sell more than 100 stores to Turkish shoe retailer FLO Maazaclk.
According to Reuters, the German sportswear firm Adidas does not currently have any plans to restart operations in Russia. The operation of Adidas in Russia continues to be suspended until further notice, this also applies to the delivery of goods to Russia,” it said in an emailed statement.
Leading technology companies like Cisco, IBM, and Microsoft wind down their business from the country, limiting access to essential equipment for Russian households and enterprises. They might now be forced to rely on outdated technology and domestic alternatives.
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