Polish fashion retailers LPP and CCC cease operations in Ukraine

(Reuters) – Poland’s two largest fashion retailers, LPP and CCC, are ceasing operations in Ukraine, company officials said on Thursday, after the Russian attack on the neighboring country led to a sharp drop in their share prices.

LPP and CCC, two of the fastest growing clothing companies in the region, manage several fashion brands including Reserved, HalfPrice, eobuwie.pl, Modivo and Sinsay.

LPP shares were down 23% at 12:30 GMT, the worst performers in the Polish blue chip index. CCC shares were down 13%.

LPP has moved its administrative offices from Kyiv to Lviv in light of the Russian attack on Ukraine, the company’s PR manager, Monika Wszeborowska, told Reuters.

Both retailers suspended all trade in Ukraine and announced that their stores would remain closed and all deliveries to Ukraine would be stopped.

LPP’s press office said staff safety was their priority.

“The situation is evolving, which is why we are closely monitoring all reports from the eastern border, including information from our office in Ukraine, and acting accordingly,” Wszeborowska said.

“One thing is certain, our plans to expand our network in Ukraine are now over,” said Wszeborowska.

As LPP’s financial statements show, Ukraine and Russia were among the largest foreign sales drivers in the third quarter.

In an emailed statement, it said Ukraine and Russia accounted for about three percent of CCC’s business and about one percent of the group’s total operations.

(Reporting by Patrycja Zaras and Adrianna Ebert; Editing by Jason Neely)