Monday, March 18, 2024

Polish company lost $3B on allegations that may be false

 Over the weekend, we could see a massive amount of media news that LPP, an owner of the Polish brand Reserved, never ended operating in Russia. 

Yahoo! Finance writes:

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.”

The stock plummeted the most on record, wiping out $3 billion in shareholder value in one day. 

Not many companies can survive such a hit.

DoRzeczy: Polish media report that LPP vice-president Przemysław Lutkiewicz says that the business in Russia had been sold, and LPP considers this chapter closed.

"However, we admit that we were not prepared to respond to this news report, but I don't know if anyone would be prepared for such an attack."

LPP submitted a notification to the prosecutor's office regarding the crime committed to the detriment of the company, its shareholders, and stock exchange investors. The basis of the notification is—as the company said—false or manipulated information published in the Hindenburg material.

The company has been listed on the Warsaw Stock Exchange since 2001. In fiscal year 2022/2023, it had PLN 15.9 billion ($4B) of consolidated revenues.

- Based on reporting by Yahoo! Finance and DoRzeczy