Sanctions impact: one of Russia's largest clothing retail chains goes bankrupt

JSC Modny Kontinent, the owner of Incity, one of the largest clothing retail chains in Russia, has been declared bankrupt by the Moscow Arbitration Court. Cases against the company have been opened.

Source: The Moscow Times, citing RIA Novosti, a Kremlin-aligned Russian news outlet

Details: Over 70% of the shares in JSC Modny Kontinent are held by eight Russian citizens (whose names have not been disclosed). Around 27% are held by Cyprus-registered United Capital Partners Selected Assets Limited, with the remaining shares owned by a British citizen and two offshore entities.

In 2020, the Incity chain had more than 280 stores in over 140 Russian cities.

At its peak, Incity, together with another brand, Deseo, had around 450 retail outlets across Russia, but by April 2025, only about 20 remained.

At the end of June, it was reported that Modny Kontinent had closed the last Incity women's clothing stores and Deseo lingerie stores.

CEO Olga Tatarchenkova had previously linked the company's difficulties to the pandemic and the introduction of sanctions, which created problems with cross-border payments.

Background: In March, it was reported that Russian clothing and footwear manufacturers were shutting down across the country and domestic brands were moving production abroad.

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