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Lush has suspended supplies to its Russian licensee and stopped online sales in the country, despite the fact its 48 stores in the region will remain open due to a legal agreement with its licensee.
In order to secure the business, the retailer is now in the process of acquiring the Lush Ukraine shares that are not currently held by the group.
According to Lush, it is “communicating daily” with its Russian and Ukrainian employees as events continue to unfold.
Russian and Ukrainian businesses are associate companies, both 65% owned by a Russian citizen who had built the business over 20 years to 48 shops in Russia and 15 in Ukraine, employing over 600 staff who “share the Lush values of environmental protection, animal rights, social justice and peace”.
With the Ukrainian shops closed and worldwide sanctions taking effect in Russia, the retailer said the business prospects are “bleak”, but do not pose a material risk to the group.
The retailer also said its overarching goal is to stand with Ukraine and with all people of peace in the region. Its short-term goal is to provide a relief fund to help Ukrainian employees.
In addition to this, Lush is currently using charity pot funds and contacts on the ground in Ukraine, and at the borders of surrounding countries, giving grants to those citizens who are joining together to provide food, shelter and support.
For example, the retailer said it has been “successful” in getting support to a hotel providing accommodation for unaccompanied children who have been evacuated from districts being shelled.
Lush added that it “stands for peace” and joins the global community calling for an “immediate ceasefire” and the protection of all lives.
