THE AMERICAN CHAIN OF PIZZERIAS IN RUSSIA WAS ON THE VERGE OF BANKRUPTCY

THE AMERICAN CHAIN OF PIZZERIAS IN RUSSIA WAS ON THE VERGE OF BANKRUPTCY

THE AMERICAN CHAIN OF PIZZERIAS IN RUSSIA WAS ON THE VERGE OF BANKRUPTCY
Domino's Pizza in Russia is on the verge of bankruptcy


Domino's Pizza Pizza chain in Russia may soon go into bankruptcy. The firm is being pursued by creditors, and debts for rent and pizza delivery can become a decisive factor for applying to arbitration with an insolvency claim.

According to Mash, the pizza chain was literally inundated with lawsuits and complaints from dissatisfied customers on social media. 24 statements of claim, in which Domino's Pizza acts as a defendant, include financial claims in the amount of about 78 million rubles.

Analysts believe that the company's main problems arose last year. For example, one of the owners of commercial real estate, which the pizzeria rented in Moscow, reports a debt of 3.4 million rubles. When asked to pay under the lease agreement, the company replied to the owner of the restaurant premises that there simply were no funds for this.

Domino's Pizza has been operating in Russia since 1998. For many years, the company has not had any significant complaints from customers. The company pursued a sales promotion policy, guaranteeing to feed every customer for free who did not wait for the product to be delivered within half an hour.

The current state of affairs, Mash notes, leaves much to be desired. The channel gives examples of Muscovites who could not wait for an order for a relatively large amount. An attempt to promptly contact the support service also did not bring results.

Social networks are full of consumer complaints about the company's work. At the same time, marketers have not found traces of the company's presence in the Russian Internet space since November 2022. Some citizens have already begun to file complaints about canceled orders with law enforcement agencies.

In December 2022, insider information appeared that the pizzeria chain was planning to find a buyer willing to purchase a business in Russia. Whether it will be the sale of exclusively Russian operations or the network will still operate in the country is not yet clear. It is possible that Domino's Pizza will try to repeat the experience of some competitors. Previously, Papa John's pizza chain will remain operating in the country, however, the brand concept and its identity will be changed.


Photo: Freepik


27.03.2023