The company that oversees the Domino's Pizza brand in Russia said it will file for bankruptcy there, signaling a definitive end to its operations in that country nearly 18 months after President Vladimir Putin launched an unprovoked invasion of neighboring Ukraine.
DP Eurasia, the franchisee for Domino's in Europe and Asia, cited unspecified business challenges in Russia, where it operated more than 100 restaurants. The U.S.-based Dominos Pizza has said it cut off financial support for the Russian business in December 2022.
A bankruptcy filing is now forthcoming, the company said.
"With the increasingly challenging environment, DPRussia's immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DPRussia as a going concern and, inevitably, the Group's presence in Russia," DP Eurasia said.
Domino's is the latest brand to pull out of Russia, although it has trailed many other Western businesses.
Since spring 2022, sanctions levied against Russia have made it difficult for outsiders to do business there. A Russian decree allowing the state to seize the assets of unfriendly corporations has business leaders on edge, with the government seizing local subsidiaries of the French food company Danone and Danish drink-maker Carlsberg.
A researcher at Yale University who is tracking corporate departures from Russia has recorded more than 1,000 foreign companies exiting the country since the Kremlin launched its invasion, although several hundred others have remained.
In December 2022, Domino's announced it was evaluating its presence in Russia to see whether it could continue serving customers there despite Western sanctions. The Russian business was already classified as "discontinued" in the company's corporate disclosures by the end of 2022.
DP Eurasia attempted to find a buyer but failed to do so, according to Monday's press release. It said it's too early to come up with an exact estimate of the cost of leaving Russia.