DOMINO'S PIZZA FRANCHISEE PLANS BANKRUPTCY IN RUSSIA

DP Eurasia, which unsuccessfully tried to sell assets in Russia, announced its intention to proceed to bankruptcy proceedings. The Dutch firm managed enterprises not only in the territory of the Russian Federation, but also in Turkey, Azerbaijan and Georgia. Her debt obligations of 520 million rubles were repaid by her "daughter" in Turkey. The firm paid 162 million Turkish liras to creditors.

In March 2022, the company began to reduce its presence in Russia. Initially, the firm refused further investments in Russia and announced its refusal of royalties. At the same time, 188 restaurants under the Domino's Pizza brand continued their work. The firm informed about its intention to solve business issues in accordance with the current geopolitical situation.

By October 2022, the number of Russian pizzerias under the control of DP Eurasia had decreased to 171. During the year, sales in the territory of the Russian Federation amounted to about 3.8 billion rubles (taking into account the floating rate of the Turkish lira – 1.2 billion lira). At the same time, the Dutch company did not publish data on the total volume of its profits.

The legal entity of the organization in Russia, according to the user agreement on the official website of DP Eurasia, is the Pizza Restaurants company. Its revenue last year exceeded 3 billion, and net profit amounted to more than 1.66 billion. However, in the court file, the company appears as a defendant in a significant number of civil lawsuits.

The company announced the possibility of selling the business back in December 2022. However, after 8 months, the firm decided to go down the path of recognizing its insolvency. In the official release of the organization reports that in Russia it was the third largest. The upcoming bankruptcy means the termination of attempts to sell the existing business, but will inevitably lead to a reduction in the presence of Domino's Pizza in the country.

As of June 30, 2023, there were 142 establishments operating in the country, some of which (about 10%) are their own enterprises, and the rest operate under a franchise. The company also has a COFFY brand of coffee shops. There are 51 retail outlets under the management of the group of companies, of which 38 operate on the basis of a commercial concession agreement.