Piechocki: LPP recorded approximately PLN 600 million in losses due to its exit from Russia

Luc Williams

LPP recorded approximately PLN 600 million in losses due to its exit from Russia, and the contractor repaid LPP in total over USD 700 million of the total debt of USD 2 billion, said the company's president, Marek Piechocki.

“LPP recorded approximately PLN 600 million in losses due to its exit from Russia, and the contractor repaid us in total over USD 700 million out of a total debt of USD 2 billion. I also want to emphasize that the company in Russia does not provide us with any information about its financial results, so “As is the case with our Group companies, we do not have access to accounts, we do not collect money and there is no so-called cash pooling. We do not deal with any financial transactions, and the management is completely taken over by the Russian company,” he said. Piechocki during a video conference.

In his opinion, LPP investors will recover what they lost as a result of the “slander” reported by Hindenburg Research, and LPP has strong foundations and development prospects.

Earlier, the analytical and investment company Hindenburg Research reported that LPP did not abandon its operations in Russia after the invasion of Ukraine. In turn, LPP submitted a notification to the prosecutor's office on the suspicion of committing a crime to the detriment of the company, its shareholders and stock exchange investors, and the basis of the notification is – as the company said – false or manipulated information published in the Hindenburg material.

LPP also denied and denied the information contained in the Hindeburg Research material, emphasizing that it does not conduct commercial activities in the territory of the Russian Federation, and the sale transaction of the Russian company was not fictitious and did not involve accounting or accounting manipulations. From 2022, LPP does not control the Russian company OOO Re Trading and its activities. LPP also noted that it did not ship goods to Russia via the territory of Kazakhstan.

“LPP will not return to Russia, and the Russian business was sold in 2022 to an unrelated investor. The sale transaction is real and final. LPP does not have an option to buy back the business and has lost control over the Russian business. The repayment of the goods and stores has been spread. over time. Neither LPP nor members of the management board have planned and do not plan to return to operations on the Russian market,” Piechocki said.

LPP manages the fashion brands Reserved, Cropp, House, Mohito and Sinsay. The company has been listed on the Warsaw Stock Exchange since 2001; is included in the WIG20 index. In the 2022/2023 financial year (February 2022 – January 2023), the company had PLN 15.9 billion of consolidated revenues.


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