Domino’s franchisee to declare Russian business bankrupt
The Russian arm of fast food chain Domino’s is likely to close after its London-listed parent company decided to put it into bankruptcy.
Apparently failing to find a buyer for the Russian business, DP Eurasia said it has decided its subsidiary should instead file for bankruptcy.
The franchisee runs around 170 Domino’s pizza sites in the country, and had previously said it was “evaluating its presence” there.
The Russian economy has been hit by sanctions since President Vladimir Putin launched an unprovoked full-scale attack on Ukraine in February 2022, a continuation of the Kremlin’s campaign in eastern Ukraine and Crimea which started in 2014.
Although DP Eurasia has not been named by Ukraine as one of the International Sponsors of War – a list which includes businesses such as Unilever, Procter & Gamble, Yves Rocher, and Mondelez – it has faced criticism for continuing to do business in Russia.
Late last year the company was named and shamed in the House of Commons for its ongoing presence in the country.
DP Eurasia said on Monday: “The company today announces the initiation of steps by DP Russia’s immediate holding company to file for DP Russia’s bankruptcy.
“This is preceded by the announcement on 28 December 2022, which confirmed that the company was evaluating its presence in Russia, the impact of sanctions, and its continuing ability to serve its customers in Russia.”
It added: “With the increasingly challenging environment, DP Russia’s immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DP Russia as a going concern and, inevitably, the group’s presence in Russia.”
DP Eurasia has Domino’s franchise sites in Turkey, Russia, Azerbaijan and Georgia. In Turkey it is the biggest pizza delivery chain, with 673 sites, and it is the third-largest in Russia.
By August Graham, PA Business Reporter