DP Eurasia to file for bankruptcy of Russian Domino’s Pizza franchisee

DP Eurasia will file for bankruptcy for its Russian business and exit the country, the operator of the Domino’s Pizza brand in Russia, Turkey, Azerbaijan and Georgia said on Monday.

In December, the company said it was considering options for its Russian operations, including a divestment, like other Western firms which have exited Moscow after its invasion of Ukraine.

Some have managed to negotiate swift exits, often selling at huge discounts or handing the keys to local management.

The pace of exits has now slowed substantially but the rules are even harder to navigate for those remaining. Executives have said gaining government commission approval is a lengthy and difficult process.

“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 in a statement.

While it was too early to determine the financial impact of the bankruptcy, the company said the unit’s external debt of about 520-million roubles ($5.56m) had been settled by DP Eurasia’s Turkish subsidiary, reducing the group’s gross debt and resulting in a gross cash balance of 162 million liras ($5.97m).

DP Russia, the third-largest pizza delivery company in the country, operated about 142 stores.