LPP (company)
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 A Reserved store in Gdańsk | |
Trading name | LPP |
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Type | Spółka Akcyjna |
| Traded as | WSE: LPP |
| Industry | Retail |
| Founded | 1991 |
| Headquarters | Gdańsk , Poland |
Area served | Europe, Middle East |
Key people | Marek Piechocki Jerzy Lubianiec |
| Products | Clothing |
| Total equity | PLN 3,412,134 |
Number of employees | 25,000 |
| Website | www.lppsa.com |
LPP Spółka Akcyjna (Lubianiec Piechocki and Partnerzy) is a Polish retailing company based in Gdańsk whose brands include: Reserved, Reserved Kids, Cropp, House, Mohito and Sinsay.
It has a total of more than 1700[1] stores located in 20 countries, mainly in central and eastern Europe. Besides Poland, stores are located in Belarus, Bulgaria, Croatia, the Czech Republic, Egypt, Estonia, Germany, Great Britain, Hungary, Kuwait, Latvia, Lithuania, Qatar, Romania, Russia, Saudi Arabia, Serbia, Slovakia, Ukraine and United Arab Emirates.[2]
Marek Piechocki has been president of the management board of LPP SA since 2015.
Contents
1 Clothing
2 LPP clothing brands
3 Shareholders
4 Listing on the Warsaw Stock Exchange
5 Company history
6 Control of the supply chain
6.1 Disaster in Bangladesh
6.2 Agreement on the safe production
6.3 Donation for the Rana Plaza victims and their families
6.4 Code of conduct
7 Controversy over tax optimization
8 References
9 External links
Clothing
Clothing is manufactured primarily in China, and to a lesser extent in India, Bangladesh[3] 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.
LPP owns the largest and most modern clothing distribution centre in Central and Eastern Europe located in Pruszcz Gdański.[4]
LPP clothing brands
LPP headquarters in Gdańsk
Reserved
The oldest, flagship brand of LPP, with the first stores opened in 1999 in Poland. From 2002, Reserved clothing has been available in the countries of Central and Eastern Europe, in Germany and Croatia from 2014, and in the Middle East since 2015. The brand offers clothing for women, men and children, the latest styles are delivered to the stores every day. There are 461 Reserved stores.
Cropp
Cropp (LPP), Tomaszów Mazowiecki, Poland
A youth brand, present in the market since 2004. Cropp clothing is visible mainly in clubs - where young people want to show their unique style and independence. Cropp has 379 stores.
House
House (LPP) in Tomaszów Mazowiecki, Poland
The brand joined the portfolio of LPP in 2009, following the acquisition of Artman. House clothing is aimed at young people whose source of inspiration and an integral part of life is music. Currently there are 330 House stores.
Mohito
Like House, it has been part of LPP since 2009, following the acquisition of Artman. Mohito designers create collections aimed at women who are confident, love fashion and combine comfort with elegance. There are 290 stores.
Sinsay
Sinsay (LPP) in Tomaszów Mazowiecki, Poland
Existing since 2012, the brand is aimed at young girls who follow the latest trends in fashion. The hallmark of Sinsay are t-shirts with bold patterns and prints. Currently there are 198 Sinsay stores.[5]
A Reserved store in Germany
In 2018, the founders of the company, in order to ensure its long-term continuity and avoid the fragmentation of LPP's capital in the future, decided to create a foundation and to transfer their shares. [6]
Listing on the Warsaw Stock Exchange
LPP SA has been listed on the Warsaw Stock Exchange since 2001. At the debut, the price per share was PLN 48. In 2014, LPP entered the WIG20 index, which brings together the 20 largest companies listed on the Warsaw Stock Exchange.[7] In the same year, LPP entered the MSCI index.[8] In 2016, the average value of one share of LPP was over PLN 5 000.[9]
Company history
- 1991 - Marek Piechocki and Jerzy Lubianiec establish Mistral, a company operating in the clothing industry
- 1995 - Mistral is transformed into LPP (the name is an abbreviation of the names of the founders - Lubianiec, Piechocki and Partners)
- 1997 - official opening of the LPP office in Shanghai
- 1999 - the first stores of the Reserve brand are established in Poland
- 2001 - first listing of LPP shares on the Warsaw Stock Exchange
- 2002 - expansion of the Reserved brand into Estonia, the Czech Republic, Russia, Hungary and Latvia
- 2003 - debut of Reserved in Lithuania, Ukraine and Slovakia
- 2004 - the first store of the new Cropp brand is established in Poland
- 2005 - Cropp clothing is available in Estonia, Slovakia and Latvia
- 2006 - debut of Cropp in Russia, Lithuania and the Czech Republic
- 2007 - LPP starts operating on the Romanian market
- 2008 - debut of LPP in Bulgaria
- 2008 - commissioning of the LPP Distribution Centre in Pruszcz Gdański
- 2009 - merger with Artman, the owner of the House and Mohito brands
- 2012 - creation of the Sinsay brand
- 2013 - opening of the first Sinsay stores
- 2014 - LPP enters the WIG20 stock exchange index
- 2014 - LPP opens first Reserved stores in Germany
- 2014 - all brands of LPP debut in Croatia
- 2015 - debut of LPP in the Middle East[10]
- 2017 - LPP opens its first flagship store on London's Oxford Street
Control of the supply chain
A Reserved store in Vaňkovka shopping centre, Brno, Czech Republic
LPP does not own any factories. The Group's clothing brands are mainly manufactured in Asia, but also in Poland and other European countries. The company has had an office in Shanghai since 1997. The office's employees are responsible, among other things, for finding suppliers, supporting various production stages and quality control. In 2015, LPP opened a representative office in the capital of Bangladesh – Dhaka. The office started its operations in May, and people employed there are responsible for coordinating and supervising the production of collections in local factories. Tasks include auditing the production facilities with which the company cooperates in terms of appropriate working conditions and observing human rights.[11]
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 did 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.
Donation for the Rana Plaza victims and their families
The company gave a voluntary donation to the victims and families of victims of the disaster at the factory Rana Plaza.[12]
Code of conduct
Regardless of accession to the agreement, LPP SA has committed to change its policy concerning cooperation with suppliers. The aim was to be able to exercise more effective control over the observance of its principles and the provisions of its Internal Code of Conduct which the company issued and implemented in 2014. The document takes into account the key provisions of the ILO conventions, the Universal Declaration of Human Rights as well as the recommendations of international civil society organisations monitoring working conditions in the garment industry. The Code contains guidelines for all foreign suppliers of LPP. The document describes their obligations in terms of employment, such as:
- remuneration policies and formal requirements for employment
- absolute ban on child labour and regulations on the employment of young workers
- voluntary work
- freedom of association
- equal treatment of all employees regardless of their gender, age, disability, national origin, race, marital status, sexual orientation, political opinions, membership (or not) in organizations, religious or caste affiliation
- health and safety standards
- suppliers' environmental responsibilities.
Verification of compliance with the provisions of the Code is a key element of LPP control activities. LPP reserves the right to conduct an unannounced audit of all factories with which cooperated.[13]
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 the Young Socialists to boycott LPP products. Leaflets were planted in stores, accusing the company of tax evasion in Poland. The controversy resulted in the removal of the Facebook campaign page at the request of LPP lawyers, due to copyright infringement.
In February 2015 the company launched a process aimed at the transfer of trademark rights to the Polish company LPP SA. The reason for the liquidation of a company controlled by LPP in the United Arab Emirates, as well as the inclusion of the Cypriot company in the Gdańsk company LPP SA, is a change in the company's development strategy. As a result, LPP SA will become the sole owner of the trademark rights to Reserved, Cropp, House, Mohito, Sinsay and the know-how developed over the years. More than 90% of the profits generated by LPP SA Capital Group will be taxed in Poland, in accordance with the provisions of the Tax Code, whereas the remaining part will be taxed in other countries in which showrooms of LPP are operated.[14]
References
^ "LPP Corporate Website | LPP in numbers". www.lppsa.com. Retrieved 2017-02-10..mw-parser-output cite.citation{font-style:inherit}.mw-parser-output .citation q{quotes:"""""""'""'"}.mw-parser-output .citation .cs1-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/6/65/Lock-green.svg/9px-Lock-green.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .citation .cs1-lock-limited a,.mw-parser-output .citation .cs1-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/d/d6/Lock-gray-alt-2.svg/9px-Lock-gray-alt-2.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .citation .cs1-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/a/aa/Lock-red-alt-2.svg/9px-Lock-red-alt-2.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .cs1-subscription,.mw-parser-output .cs1-registration{color:#555}.mw-parser-output .cs1-subscription span,.mw-parser-output .cs1-registration span{border-bottom:1px dotted;cursor:help}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/4/4c/Wikisource-logo.svg/12px-Wikisource-logo.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output code.cs1-code{color:inherit;background:inherit;border:inherit;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;font-size:100%}.mw-parser-output .cs1-visible-error{font-size:100%}.mw-parser-output .cs1-maint{display:none;color:#33aa33;margin-left:0.3em}.mw-parser-output .cs1-subscription,.mw-parser-output .cs1-registration,.mw-parser-output .cs1-format{font-size:95%}.mw-parser-output .cs1-kern-left,.mw-parser-output .cs1-kern-wl-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right,.mw-parser-output .cs1-kern-wl-right{padding-right:0.2em}
^ "LPP on the world stage". Retrieved 2017-09-23.
^ "LPP Corporate Website | RESPONSIBLE PRODUCTION". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | Headquarters, Offices and Logistics". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | Brands". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | Shareholding". www.lppsa.com. Retrieved 2017-02-10.
^ Interactive, SUPERMEDIA. "GPW.pl - Karta spółki - LPP | LPP | PLLPP0000011". www.gpw.pl. Retrieved 2017-02-10.
^ "LPP wejdzie do indeksu MSCI Poland". Bankier.pl (in Polish). Retrieved 2017-02-10.
^ "LPP Corporate Website | SHARE PRICE PERFORMANCE". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | LPP history". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | Headquarters, Offices and Logistics". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Corporate Website | Anniversary of the tragedy in Bangladesh". www.lppsa.com. Retrieved 2017-02-10.
^ "LPP Code of Conduct" (PDF).
^ "LPP Corporate Website | CR 19/2015 First shareholders notification about the plan of the Cross-Border Merger with another company". www.lppsa.com. Retrieved 2017-02-10.
External links
- Official website
 WIG30 companies of Warsaw Stock Exchange | |
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