Due to the inability to determine further activities of LPP in Ukraine, the company decided to fully write off the value of all Ukrainian assets worth approximately PLN 270 million, LPP reported. The company suspended its activities for an indefinite period.
With the declaration of martial law in Ukraine – all stores belonging to the company were closed. Due to the impossibility of determining further activities on the Ukrainian market, the company intends to make a full write-off of the value of all assets located in Ukraine – these are stores (investments in foreign fixed assets), inventories and cash. The total value of the write-off will amount to approximately PLN 270 million, according to LPP announcement.
At the same time, the management board informs that the company and its employees undertake a number of activities aimed at providing support to LPP Ukraine employees, their families and relatives and all others in need of help. A special point of contact has been established for people who want to leave the endangered territory, transports from the Polish border into the interior of the country are organized, care and accommodation are provided, as well as financial, psychological and legal support. From warehouses located in Ukraine, clothes are distributed to people in need. LPP’s subsidiaries located in Slovakia, Hungary and Romania were also included in the aid campaign. At the same time, the LPP Foundation, together with social partners and aid organizations, is preparing a wider campaign of material support for Ukraine, it was also reported.
The company does not make a decision to withdraw from Ukraine, but the activities conducted there are suspended indefinitely until the conditions ensuring the safety of employees are restored in the country, LPP announced.
As at January 31, 2022 (end of the financial year 2021/22), the company had 157 own-brand stores in Ukraine. In the financial year 2021/22 (the period covering 12 consecutive months from February 2021 to January 2022), LPP Ukraine generated sales of PLN 713 million, which constitutes approx. 5% of the total sales of the group.
LPP manages the fashion brands Reserved, Cropp, House, Mohito and Sinsay. The company has been listed on the Warsaw Stock Exchange since 2001.
Source: LPP and ISBnews
