US-based off-price department retailer TJX Companies (TJX) has revealed plans to divest a stake in Russian off-price retail chain Familia following Russia’s invasion of Ukraine.
The company’s senior executive vice-presidents, Doug Mizzi and Scott Goldenberg, have resigned from their respective posts of director and observer on Familia’s board with immediate effect.
In a statement, TJX said: “Given the recent Russian invasion of Ukraine, TJX has committed to divesting its equity ownership in Familia in support of the people of Ukraine.
“As a result of this commitment to divest, TJX may recognise an investment loss when its Familia position is sold.
“Prior to a sale, TJX may be required to record an impairment charge if the fair value of its Familia investment declines below its carrying value on the balance sheet.”
Based on the equity accounting method, TJX estimates the ‘carrying value’ of its investment in Familia to be worth $186m as of 29 January.
The company acquired a 25% stake in the Russian firm for $225m in 2019.
Domiciled in Luxembourg, Familia operates a network of more than 400 stores in Russia.
TJX does not have any sales in Russia or Ukraine.
In a separate development, Swedish furniture retailer IKEA has decided to halt all its exports and imports into and out of Russia and Belarus.
The company has also paused all its IKEA Industry production operations in Russia.
These decisions are understood to have directly impacted 15,000 of its colleagues.
In a statement, IKEA said: “The war has had a huge human impact already. It is also resulting in serious disruptions to supply chain and trading conditions.
“For all of these reasons, the company groups have decided to temporarily pause IKEA operations in Russia.”
British retailer Marks & Spencer (M&S) is also suspending shipments to its Turkish franchisee’s Russian business with immediate effect.