French Leroy Merlin, a giant in the sale of DIY equipment and one of the main foreign employers in Russia, announced on Friday, March 24 that it wants to sell all its stores in this country to “local management”More than a year after the start of the conflict in Ukraine.
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said Adeo, the parent company of Leroy Merlin ‘Intent to give up control’ The company, which has been established for eighteen years in Russia, has its second market after France. this process “It must make it possible to preserve the jobs of 45,000 employees and keep the company afloat”argues in a press release from the French group, which is owned by the Molise family.
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The operation will be subject to approval by the relevant authorities of Russia, specifies the press release, which quotes “It started working several months ago in compliance with the applicable regulations.”.
The Mulliez Group has been founded in Russia for a long time
Many of the brands owned by the Molise family have remained well established in Russia, despite the invasion of Ukraine by Russian forces. She told AFP that the 113 Leroy Merlin stores in this country represent between 18 and 20% of the company’s total sales.
Adeo made clear last year that it was maintaining its business in Russia but was putting all new investments on hold, citing the risk of “confiscation” In the event of a withdrawal, a threat was waved by the Russian authorities. Auchan, another brand belonging to the Mulliez family galaxy, generates more than 10% of its sales in Russia, for 230 stores, according to figures from mid-2022.
However, while many French and Western groups had withdrawn from Russia since the start of the war, the Molise family’s decision to remain in the country drew criticism. In mid-February, the head of Ukraine’s diplomacy, Dmytro Kuleba, accused Ochan of becoming “A complete weapon for Russian aggression” After Le Monde published an investigation that the group was going to contribute to Moscow’s war effort.
The option to withdraw from Russia comes at a cost to Western companies. And so, last year the French bank Societe Generale broke away from its Russian retail banking subsidiary, Rosbank. A withdrawal that resulted in the loading of more than 3 billion euros into its accounts.
