Russian Lush closes a third of stores and lays off employees

After the British cosmetics company Lush announced on March 10 that it was freezing its work in Russia, the domestic network faced a suspension of supplies and felt a shortage of products. According to Dmitry Azarov, the owner of the Lush Russia, there will be enough goods in warehouses for a maximum of 3 months, after which some of the shops will have to be closed.

Specifically reported on the closure of 17 stores and layoffs of about 200 employees. The company's management does not hope that the situation may change, so they decided to take this forced step, calling what is happening a disaster.

The Russian Lush has been working for 20 years, and annually it brought the British company about 2% of the profit.

In 2021, Lash Russia's revenue amounted to 1.6 billion rubles, and profit - 95.5 million rubles.

Azarov also owned a stake in the Lush Ukraine, however, due to the current situation, he was forced to transfer his assets to the parent company in England, otherwise they would simply be nationalized.

It is possible that in the future the brand will change its name and launch its own production, but will no longer be able to sell the original Lush cosmetics, because most of the ingredients were specially developed by the British company. It will not be possible to restart a business that has existed for decades in a couple of months. "This will take time", says Azarov.