Go Sport, the Polish subsidiary of the Russian largest sporting goods retailer Sportmaster is pushed towards bankruptcy, the Russian newspaper Kommersant reported, citing sources close to the matter. Despite obtaining permission to sell the Polish business to British Sports Direct, Sportmaster failed to close the deal, while restrictions against the Russian businesses imposed by Polish authorities paralyzed the network, Kommersant said. Other Russian companies operating in Poland – the largest e-commerce company, Wildberries, and the Faberlic perfume and cosmetics holding, which also fell under sanctions – have already shut down their business in the country.
Sportmaster purchased the Polish branch of Go Sport in 2019 for €40 million in a bid to enter the EU sporting goods markets. The group aimed at dynamic international development, expanding and strengthening its presence in the sporting goods markets in Asia and Europe, director of Sportmaster operations Dmitry Barkov said at the time, adding that the company planned to invest in expanding its presence in Europe.
On April 27, 2022, the Polish authorities put Go Sport on the sanctions list along with 35 other companies from Russia and Belarus. All retailer’s bank accounts in the country were immediately blocked, and 25 outlets were closed together with its online store. In early May, the Polish Ministry of Internal Affairs Mariusz Kaminsky called the government to consider removing Go Sport from the sanction list, calling restrictions put on the company “counterproductive.” Sportmaster rolled out plans to sell Go Sport in March and got permission for the deal from the Polish Competition and Consumer Protection Authority in early May. However, the deal has never happened, and Sportmaster is unlikely to find any new companies willing to purchase its Polish division.
“Due to the general sentiment in Poland regarding Russia, only companies from other countries could be a potential buyer of Go Sport,” said Olga Sumishevskaya, partner of the Russian consulting firm One Story, adding that another part of the problem is that Go Sport was loss-making. On the other hand, Go Sport accounted for only a small share of Sportmaster’s revenue. Hence, its closure is unlikely to impact its business seriously, Sumishevskaya said, warning that things look way more serious for the Russian sporting goods retailer in Asia, where its main production is based. “The usual supply chains have been disrupted due to the refusal of large container companies to work with Russia, so transportation from China is carried out now only by rail or through a large number of ports by small players,” she added.
