LPP (company)
 A Reserved store in Gdańsk | |
| LPP | |
| Joint-stock company | |
| Traded as | LPP |
| Industry | Retail |
| Products | Clothing |
| Total equity | 3 412 134 zł |
| Website | http://www.lppsa.com/ |
LPP S. A. (Lubianiec Piechocki i Partnerzy) is a large Polish retailing company based in Gdańsk whose brands include: Reserved, CroppTown, Reserved Kids, House, MOHITO and Sinsay.
It has a total of more than 1,300 stores in Poland and abroad, mainly in central and eastern Europe. Besides Poland, stores are located in Germany, Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Romania, Russia, Slovakia and the Ukraine.
Marek Piechocki has been president of the management board of LPP SA since it began trading publicly on the Warsaw Stock Exchange (WSE) in 2000.
Clothing
Clothing is manufactured primarily in China, and to a lesser extent in India and Poland. The design center for the Reserved, Cropp and Sinsay brands is located in Gdańsk, while the center for House and MOHITO is in Kraków.
Disaster in Bangladesh
After the 2013 disaster at a clothing factory in Bangladesh (in which a building collapsed killing 1,129 workers), CroppTown tags were found in the ruins of the factory. Representatives of the company said that they do not control working conditions in places where they have production.
Agreement on the safe production
LPP SA was the first Polish clothing company in Poland acceding to the agreement (Accord on Fire and Building Safety in Bangladesh) aimed at improving safety in factories producing garments in Bangladesh. It is a pioneering agreement for clothing companies, and international and local NGOs, to ensure sustainable improvement in safety and working conditions.
The agreement consists of over 100 companies from the textile industry, mainly from Europe. For a five-year period there will be a series of remedial actions, ranging from independent monitoring of factories, and their modernization. During the program, LPP SA undertook to pay membership fees, which will provide the opportunity to conduct inspections and training of up to $2.5 million and incur other costs related to the improvement of safety in the factories.
Regardless of accession to the agreement, LPP SA has committed to change in the coming year. The aim is to be able to exercise more effective control over the observance of its principles and the provisions of its Internal Code of Conduct from its providers.
Controversy over tax optimization
In January 2014, LPP SA's decision to move the brands to the subsidiaries in Cyprus and the United Arab Emirates sparked protests. Within days, 10,000 people joined a boycott page on Facebook initiated by Young Socialists to boycott products of LPP. Leaflets were planted in stores, accusing the company of tax evasion in Poland. The controversy caused the removal of the Facebook campaign page at the request of lawyers LPP, due to copyright infringement.[1]
References
- ↑ "Textile giant LPP has bumper year in 2013". Polskie Radio (Polskie Radio). 2014-02-13. Retrieved 2014-02-26.
In January 2014, a campaign for a boycott of LPP clothing was launched on Facebook, after it emerged that it was -re-registering several of its brands abroad in Cyprus and the United Arab Emirates, in order to pay less tax.
External links
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