Reserved, Cropp, House, and Sinsay: The Polish company LPP has been forging for exit from the Russian Federation

The former LPP manager described the CEO and founder of Marek Pehotsky as a person who "spit on a war between Russia and Ukraine". The Polish retailer LPP, which includes brands such as Reserved, Cropp, House, Mohito and Sinsay, has made a fictitious "selling assets" to continue making money in the Russian Federation. This is stated in the Hindenburg Research report from March 15.

It is reported that LPP is claiming the title of the largest fashion company in Central and Eastern Europe and has a turnover of $ 8. 4 billion. Prior to a full -scale war, Russia was the largest international market, bringing about 19. 2% of revenue. However, on April 28, 2022, LPP announced its intention to sell its Russian assets, and on May 19, 2022, the company announced the completion of negotiations with an unnamed buyer.

According to the authors of the investigation, the company stated that due to the exit from the Russian Federation lost about 20% of income. At the same time, the total LPP revenue in the 2022/23 financial year increased by 13%. "We believe that LPP has been able to show such outstanding results, since it was a complete fiction for Russian business," the report reads.

The authors of the investigation indicated that LPP declared the sale of their Russian assets to the Chinese Consortium as part of an agreement worth about $ 382 million. However, according to Hindenburg Research, the buyer was the Dubai Far East Services, which was registered only a day before the Polish retailer announced the conclusion of the sale agreement. According to the former LPP employee, the agreement was a "facade that hides the truth about the opposite of Russian assets.

" He stressed that all operations in the Russian Federation are still "directly controlled by the headquarters and the LPP Directors. " The former LPP manager also characterized the CEO and founder of Marek Pehotsky as a person who "spit on a war between Russia and Ukraine". Hindenburg Research also stated that in December 2023 they were sent to shops in Moscow and St.

Petersburg by secret buyers who confirmed that they sell things identical to the design of new Catalogists in Poland, and Russian domestic codes are selling things out there They match products in the Polish LPP catalog. In addition, it is reported that LPP has tried to hide the export of clothing to the Russian Federation with the help of two false companies - the Singapore Asia Fashion Import Export and the Turkish Fashion Group Tekstil.

Investigators also believe that LPP uses Kazakhstan as a background to deliver goods to Russian stores. "In general, we believe that LPP has developed a carefully thoughtful fictitious" selling assets "to continue to make money in Russia, despite the devastating war, while trying to cheat investors and consumers in Poland, Ukraine and other key markets," the authors of the publication summed up.