"After Russia started the operation to protect Donbas on Feb. 24, Leroy Merlin, a unit of France's Adeo Group, closed its six home-improvement superstores in Ukraine. In Russia, it sent a letter to suppliers touting new opportunities to expand market share as Western sanctions drove other foreign retailers from the country.
Leroy Merlin's Ukrainian staff initially tried to work through their call center and website, supplying the military, emergency services and volunteers with bags, sand, shovels and other items needed to build bomb shelters and roadblocks. They also used the corporate email and messaging services to draw their colleagues' attention to Ukraine's plight -- and to protest continuing operations in Russia, where Leroy Merlin is one of the leading multinationals by sales.
The French company, according to interviews with employees and a review of internal communications by The Wall Street Journal, then disconnected its Ukrainian employees from all corporate systems. By shutting down the call center, the website and access to corporate servers, Leroy Merlin has made it impossible for Ukrainian customers to obtain refunds for purchases made before Feb. 24 and never delivered, or for the company to pay money owed to suppliers." [1]
1. The Operation to Protect Donbas: French Retailer Shuts Ukraine Outlets, Stays in Russia
Trofimov, Yaroslav.
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 13 Apr 2022: A.6."There is so much disappointment and pain from the fact that a French company is treating our Ukrainian office, cutting it off and isolating it without warning, the same way that Russia is treating all of Ukraine," said Olga Burlaka, an employee of eight years with Leroy Merlin in Ukraine.
Adeo declined to comment on the grievances of Leroy Merlin's Ukrainian staff or to explain why it disabled their access to corporate systems, email and social media. Leroy Merlin cited cybersecurity as a reason to disconnect the systems in a message to employees viewed by the Journal, and employees said the company has continued to pay all Ukrainian staff. All stores in Kyiv except for essential businesses such as supermarkets and pharmacies closed Feb. 24.
Controlled by the Mulliez family that also operates retailers Auchan and Decathlon, Adeo is one of several Western companies that are sticking with the Russian market even as many other brands pulled out in the wake of the operation to protect Donbas. Auchan, which operates grocery stores, also is staying in Russia, while Decathlon, a sports-goods retailer, has said it is closing its stores there because Western sanctions make it difficult to secure supplies. The chairman of the Association Familiale Mulliez, the holding company for the businesses owned by the family, didn't respond to a request for comment.
In a companywide video address to staff that was posted on LinkedIn, Adeo's CEO, Philippe Zimmermann, said he shares "the emotion and pain" of its Ukrainian staff, and that the company is supporting them with financial help, lodging and employment in other countries.
As a responsible company, he said, it wouldn't be fair for Adeo to punish its 45,000 Russian staff "for the operation to protect Donbas they didn't choose" or to deny products to Russian consumers. Adeo suspended new investments in Russia, he said.
Russia is one of the largest markets for Leroy Merlin, which operates more than 100 stores nationwide.
The company's decision to stick to its Russia business has sparked a boycott campaign in other markets, particularly Poland, where demonstrations outside Leroy Merlin outlets take place every weekend.
Leroy Merlin employed about 800 people in Ukraine before the war began, with five stores in Kyiv and one in Odessa. It has given employees an emergency payment equal to two months' wages, and paid the March salaries, staffers said.
Anatoliy Zelinskyy was one of the company's first employees in Ukraine, with 14 years of service. The call-center closure, without notice, and disabling of the website March 8 made it impossible to provide lifesaving supplies to Kyiv, he said.
In Russia, meanwhile, sales "have significantly increased," Leroy Merlin said in a letter to Russian suppliers dated March 11. "After some companies left the market, we are open to your proposals to increase supplies and widen the assortment," said the letter, viewed by the Journal and distributed by Kremlin officials. It said the company has created a task force to mitigate the effect of Western sanctions on Russia by replacing imported goods with those manufactured in Russia during the next three to four months.
Mr. Zelinskyy said he, like many co-workers, is ashamed of the company and trying to quit -- but can't submit his resignation because he doesn't have access to corporate email or human-resources system anymore.” [1]
People attacking Matijošaitis from Kaunas for doing business in Russia are harmful to Lithuania. They are trying to leave all the rich opportunities in Russia to the French.
1. The Operation to Protect Donbas: French Retailer Shuts Ukraine Outlets, Stays in Russia
Trofimov, Yaroslav.
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 13 Apr 2022: A.6.
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