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May 27, 2022

Nike ends investments, franchises in Russia

US sporting goods giant Nike, Inc. tells Just Style its franchise agreements with Up and Run will not be renewed in Russia, nor will any new investments take place.

By Fi Forrest

In a statement to Just Style, Nike confirmed that due to “operational challenges” in Russia, the brand has made the decision not to renew or enter into any new business commitments in the country, including with its Up and Run franchises.

“Our business remains on pause and we are providing pay continuity to our employees,” Nike added. 

The Up and Run Russian website currently shows a notice stating: “Friends, some of our stores and the site have temporarily stopped working,” although many of the Nike branded stores, which are mostly based in Moscow, are still listed as open. 

On 3 March, Nike announced it was temporarily suspending all of its operations in Russia, although some independent stores remained open after that, according to news publication, Reuters at the time.  

Nike’s complicated franchise agreements with Russian stores made extricating itself more difficult than simply pulling out.

In March, UK retailer Marks & Spencer (M&S) faced similar issues.

For further Just Style reports on the Ukraine-Russia crisis, and its impact on the global apparel industry, see here.  

In March, Nike retained its position as the world’s most valuable apparel brand, despite a “significant” 12% drop in brand value to US$28bn. 

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