DP Eurasia, which owns franchise rights to Domino’s Pizza in Russia, is set to file for bankruptcy for its Russian business and exit the country.
The move would put an end to the sale process for the unit, which began by DP Eurasia last year.
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On 28 December 2022, the company announced that it is assessing its presence in Russia, the impact of sanctions, and its continuing ability to serve its customers in the country.
The move may result in the closure of around 142 Domino’s Pizza stores in the country, which are operated by DP Russia, a Russian subsidiary of DP Eurasia, according to Reuters.
Since Russia and Ukraine war, circumstances for Western companies in Russia have become extremely unviable to continue their operations and also made it more expensive for Western companies to sell their Russian businesses, according to a CNN report.
DP Eurasia in a statement said: “With the increasingly challenging environment, DPRussia’s immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DPRussia as a going concern and, inevitably, the group’s presence in Russia.
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By GlobalData“It is too early to have an exact estimate of the financial impact of a potential insolvency of DPRussia on the consolidated financial position and results of the Company.”
With this move, DP Eurasia has joined other restaurant companies such as Yum! Brands, the parent company of KFC, and McDonald’s.
