Collapse of Russian retail: Incity chain declared bankrupt
5 December 15:13
The Moscow Arbitration Court has declared bankrupt Fashion Continent JSC, the owner of Incity, once one of Russia’s largest clothing chains. This was reported by The Moscow Times, according to "Komersant Ukrainian".
The decision to initiate proceedings effectively puts an end to the history of the brand, which a few years ago covered more than a hundred cities in the country.
Who owns the company
The company, whose ownership structure is distributed between Russian shareholders, Cyprus-based UCP Selected Assets Limited and several non-residents, has been in a long decline. After the pandemic and the start of widespread sanctions, the retailer reported difficulties with cross-border payments and deliveries.
At its peak, Incity and its related brand Deseo had about 450 outlets across Russia. However, by April 2025, according to The Moscow Times, only about twenty stores were operating, and the company closed the last of them in the summer.
Incity’s problems are part of a broader trend
Incity’s problems are part of a broader trend: Russian clothing and footwear manufacturers are gradually winding down operations or moving production abroad. The industry is experiencing a shortage of raw materials, higher logistics costs, and limited access to Western technology.
The bankruptcy of Fashion Continent may accelerate the consolidation of the market, which is currently dominated by local brands with lower quality products and companies that operate through parallel imports.
