Marketing

Lego shuttering Russia franchise business

Photo by istock.com

July 20, 2022

Toy maker Lego will shutter business in Russia by terminating its contract with a franchisee that operated 81 stores for the brand.

The decision will include laying off 90 Moscow workers, according to a Reuters report.

The closure is due to "extensive disruption" in Russia given the country's invasion of Ukraine. The franchisee is Inventive Retail Group which also runs franchise shops for other name brands including Nike.

"Lego Group has decided to indefinitely cease commercial operations in Russia given the continued extensive disruption in the operating environment," a Lego spokesperson told Reuters.

An IRG spokesperson stated it will continue to serve as an expert regarding toy design and development.