Starbucks to liquidate Russian entity -Sota Vision cites source
2022.05.23 16:21
FILE PHOTO: The Starbucks logo is seen outside a Starbucks cafe in Warsaw March 6, 2011. REUTERS/Kacper Pempel
(Reuters) – Coffee giant Starbucks Corp (NASDAQ:SBUX) is closing down its Russian legal entity Siren Coffee and will let its employees in the country go over the next few months, Russian media outlet Sota Vision reported on Monday, citing a source.
In early March, the company said it was suspending all business activity in Russia, including the shipment of its products and cafes run by a licensee, one of scores of Western brands to pause operations in the wake of Russia sending tens of thousands of troops into Ukraine on Feb. 24.
Starbucks’ decision to liquidate its Russian business is different to the approach some foreign companies exiting the market have taken, including McDonald’s (NYSE:MCD) and Renault (EPA:RENA), both of which announced sales to local partners last week.
Workers removed the trademark “Golden Arches” sign from a McDonald’s restaurant on Monday, as the first stage of a rebranding got underway, in one of the most high-profile exits so far in opposition to what Russia calls its special operation in neighbouring Ukraine.
