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> World

The Western brands unable to leave Russia

The invasion of Ukraine has led many Western brands to shun Russia, but some still have outlets open in the country & say they are not able to shut them

Newsroom March 17 11:00

Marks and Spencer, Burger King, and hotel groups Marriott and Accor are restricted by complex franchise deals preventing them from withdrawing.

The firms have outsourced the Russian businesses to third parties and do not own the operations bearing their name.

Together the firms have almost a thousand outlets still open in Russia.

M&S has 48 shops and Burger King has 800 restaurants still open, whilst Marriott and Accor have 28 and 57 hotels open respectively.

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The BBC understands the brands are locked into legal franchise agreements, making it difficult for them to remove their name from Russia’s High Streets and shopping malls.

A lot of Western firms have held such agreements for decades. For example, Marks and Spencer stores have been operated by a Turkish company called FiBA, which has held the rights to sell the retailer’s products across Eastern Europe, since 1999. The retail giant has said it has suspended shipments of its goods to FiBA in response to the war.

Read more: BBC

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