Poland’s LPP Sheds $3 Billion as Hindenburg Alleges Russia Ties
- Short-seller says LPP didn’t fully divest its Russian business
- LPP denies findings as shares tumble most since 2001 listing
An LPP House brand clothing store in Warsaw.
Photographer: Damian Lemański/BloombergThis article is for subscribers only.
Shares in one of eastern Europe’s biggest fashion retailers plunged 36% after activist short-seller Hindenburg Research said the Polish company’s withdrawal from Russia was a “sham.”
Hindenburg’s report on Friday alleged LPP SA didn’t fully divest its Russia business as promised following the start of war in Ukraine two years ago and has been selling its goods there through third parties. The short-seller dispatched “secret shoppers” to Moscow and St. Petersburg stores which it said sold “identical” clothes to LPP’s.