Shares of one of the largest retailers in Eastern Europe, LPP (Cropp, Sinsay, Mohito, Reserved stores), fell by 35% after Hindenburg Research said that the Polish company’s exit from Russia was a fraud. Bloomberg reports this.
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The Hindenburg Research report claims that LPP did not completely abandon Russian business after the start of the full-scale Russian invasion of Ukraine and sold there its goods through third parties.
Due to the fall in shares on Friday, March 15, the company lost about $3 billion.
LPP said it was the victim of an “organized disinformation attack” and does not own or manage a business in Russia.
Before the war, the Russian market was second only to the Polish market in terms of importance for LPP. Hindenburg Research argued in detail that Russian business did not leave the control of the main structure at all, that is, the company misled both shareholders and creditors.
In December, Hindenburg Research sent agents to FES stores in Moscow and St. Petersburg, and they recorded clothes there that were identical to the new Polish collections.
