Lingerie firm Agent Provocateur under pressure over Moscow franchise stores | Russia

In its three decades in British retail, lingerie brand Agent Provocateur, born in the 1990s from the son of Dame Vivienne Westwood, has rarely avoided controversy.

From its bold window displays to that 2001 TV ad featuring Kylie Minogue riding a velvet bronco, the brand has aroused strong emotions. But she had not, until now, been accused of having inadvertently contributed to the financing of a war in Europe.

The continued presence of Agent Provocateur brand stores in Russia however, politicized peekaboo bras, barely corsets and sex toys, as the company was placed in a database of companies that might aid and abet Russian aggression, albeit unwittingly.

The Kyiv School of Economics (KSE) Leave Russia Project argues that “international companies can exert their influence by applying economic pressure and refusing to cooperate with the aggressor.” Otherwise, it is claimed, they add value to the Russian economy.

There appear to be 10 Agent Provocateur franchise stores in Moscow, as listed on agentprovocateur.ru, a Russian-language website. Typically, a franchisee pays a fee to operate under a brand and sell its products.

Denis Dovgopoliy, a prominent venture capitalist in Ukraine who has backed efforts to persuade Western companies to leave Russia, said a franchise model allowed “Russian entrepreneurs to start businesses and pay taxes”, although he said he had a particular contempt for those who were “actively involved in the supply or technology chain of entire industries”.

Agent Provocateur was co-founded in 1994 by Westwood’s son, Joe Corré, and his now ex-wife Serena Rees, and has changed hands several times. In 2017, the brand was acquired for around £30m by Four Holdings, the parent company of fashion brand agency Four Marketing.

Asked about the brand’s continued presence in Russia, in light of the war in Ukraine, a spokesperson for Agent Provocateur said the stores were “operated by franchisees under franchise/license agreements”. under a “system set up by the former owner of the company many years ago”, and that the company itself “does not ‘operate’ in Russia”.

The spokesperson added that the number of stores was “very low”. “The agreements we have are confidential and therefore we are not free to discuss the terms or any negotiations regarding them,” she said. “However, it must be understood that you cannot simply abandon contractual arrangements without provisions legally allowing you to do so.”

She added that the Guardian appeared to be making a number of “false assumptions” and that the company “reserved[s] the right to seek all available remedies against you personally and against your article in the courts if you continue to publish inaccurate/defamatory claims now or later”.

The franchise model has made it difficult for other big brands to extricate themselves from Russia, including Burger King, but the pressure on Western companies remains fierce. Ukrainian President Volodymyr Zelenskiy repeatedly asked them out.

Last week, Zelenskiy’s chief economic adviser, Oleg Ustenko, said BP was earning “blood money” by retaining a 20% stake in state-controlled Russian oil company Rosneft. BP said it was divesting, but Ustenko questioned many companies’ reasons for staying. “If they apply some of the creative energy they used to enter the Russian market, I’m sure they can relate to it,” Ustenko said.

There are certainly a series of explanations provided for remaining in Vladimir Putin’s Russia. Southampton-based tea specialist company Ahmad Tea continues to offer Russians “the opportunity to experience this wonderful English tea” through joint ventures with local companies that control operations.

A spokesperson said: “Under international humanitarian law, the delivery of food and drink to the population must continue without restriction under customs exemptions sanctioned by the World Customs Organization which protect the delivery of food to humanitarian purposes.”

Avon Cosmetics, a famous door-to-door seller, is also named on the Leave-Russia.org website. The company said it was considering its future. “In terms of operations in Russia, Avon provides its representatives with the means to maintain financial independence and powers their social selling businesses through a streamlined, self-contained operation,” a spokesperson said. “We see this as essential support for women whose livelihoods depend on their Avon business and believe that restricting their access to selling products would have a disproportionate impact on women and children.”

Meanwhile, Wheely, a UK-based luxury ride-sharing service that offers its services in London, Paris, the United Arab Emirates, Moscow and St Petersburg, has clashed with the Kremlin over its refusal to hand over the data. real-time passenger locator, but continues to provide services in Russia — in part, he said, on the grounds that his vehicles can help people escape.

A spokesperson said: “We are troubled by the continuing events in Ukraine, and our hearts go out to those affected by the war. Our priority remains the safety and well-being of our teams and customers, and we have helped fund the relocation of employees out of Russia and continue to donate to Red Cross humanitarian efforts in the region.

“Meanwhile, fully private transportation in Russia is more important than ever right now. As the only privacy-conscious ride-hailing operator that stood up to authorities in Moscow to protect customer data, we have made the decision to continue to operate our existing Russian subsidiary in a limited capacity, while refraining from further investment in the Russian market.

“We understand that not everyone will agree with our approach, but we aim to balance the need for people remaining in Russia to have a safe and private way to travel, with our continued opposition to the war in Ukraine. .”

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