The OBI retail chain in Russia has faced a wave of lawsuits that collectively exceed 283 million rubles, triggered by non-fulfillment of obligations under lease and supply agreements. Legal actions filed between March and May target Russian branches of the chain, seeking compensation for disputed contract terms and missed payments. The bulk of the liability centers on rent, with a single claim reaching 37 million rubles in penalties and arrears. This legal pressure comes at a time when the business continues to operate stores, yet remains unprofitable and under intense public and financial scrutiny.
Industry observers note that the surge in lawsuits was not unforeseen. The network went ahead with opening new stores while monitoring results, and management reportedly faced uncertainties around the identity and strategy of a prospective new owner. Separately, several suppliers began demanding upfront payments or shorter payment windows, a shift that tightens cash flow and complicates day-to-day operations. Historically, suppliers had enjoyed payment terms of 45 to 90 days, a cadence that can be hard to sustain when revenues lag expectations and working capital is strained.
Analysts estimate that several billions of rubles would be required to restore normal functioning of the retail network. This capital would cover critical needs such as inventory procurement, store refurbishment, logistics optimization, and working capital to bridge during the transition period. The investment outlook hinges on stabilizing supply chains, restoring consumer confidence, and achieving a predictable rent and lease arrangement that aligns with the business’s scale and market conditions.
In a related development, at the end of April, the Federal Antimonopoly Service disclosed signals from a group of investment and construction companies expressing interest in acquiring the OBI chain. While such a move could provide strategic capital and structural changes, it also raises questions about governance, integration of supplier networks, and the long-term viability of the chain within the broader Russian retail landscape. Stakeholders are watching closely to see whether the proposed acquisition would bring stability, stronger cash flow, and a clearer roadmap for turning the network into a profitable operation.