Jul 15, 2026
Several Russian retailers are on the brink of closure and bankruptcy – cosmetics manufacturer Oomph, grocery chain Selgros, and streetwear brand Marcelo Miracles. The companies face the risk of closure amid rising costs, declining demand, and increased competition.
List, a cosmetics company under the Oomph brand, has published a notice of intent to file for bankruptcy on Fedresurs, according to Shoppers. The company was founded by Alexander Azarov, a former co-owner of the Russian branch of the British brand Lush, after Lush ceased supplying Russia in 2022. Azarov stated that the bankruptcy notice was published prematurely and that no decision to terminate the business has been made. He added that the company is discussing various options, from reducing the number of stores to closing the business. “We really hope that we can save the business,” the entrepreneur said.
The British brand Lush had been present in the Russian market for over 20 years, specializing in cosmetics with natural ingredients. In 2021, the Russian division’s revenue was 1.55 billion rubles, net profit was 95.5 million rubles, and the network consisted of 48 stores. After Lush ceased supplying Russia, Azarov launched his own brand, Oomph. In 2025, List LLC’s revenue decreased by 12% to 246.3 million rubles, and net loss increased to 35 million rubles.
Another problematic company is the small-scale wholesale chain Selgros. The retailer’s operating company, Selgros LLC, may be declared bankrupt following a filing by Molga. Selgros operated in Russia since 2006, and in 2024, Arosa Logistics acquired Selgros’s Russian business. However, by 2025, all Selgros stores had closed. According to SPARK, in 2025, Selgros LLC’s revenue fell by 92% to 667 million rubles, while its net loss reached 1.1 billion rubles.
Russia’s largest grocery retailers have slowed the pace of new store openings. In the first quarter of 2026, the 200 largest chains saw their lowest volume of new retail space openings in 15 years—282,500 square meters, a 36% decrease from the previous year. The analytics firm Infoline attributed the decline in retail activity to falling consumer demand and rising costs. According to Sberbank, real consumer demand growth in the first quarter of 2026 slowed to 2.2% from 4.2% the previous quarter. “This is due to cooling demand for all types of goods,” said Taras Skvortsov, the bank’s CFO.
Marcelo Miracles, founder of the streetwear brand, also reported a critical business situation . According to him, the company is on the verge of closure due to rising expenses, declining sales, and the departure of key employees. In 2025, Marcelo Miracles’ sales declined by 30%. The company attempted to adapt to the new conditions by cutting costs and releasing more affordable collections, but this did not help. Marcelo Miracles was founded in 2016. In 2021, the company’s revenue reached 62 million rubles. In 2024, the brand opened a boutique in Paris, and in 2025, a location in Moscow.
The difficulties of individual companies reflect the broader problems of the apparel market. In the first five months of 2026, not a single new foreign brand entered the Russian market—the first time since 2022. In 2025, brands such as Am Studio, Mellow, Incity, Deseo, Ready! Steady! Go!, Etam, Yollo, Mudo, Face Code, Just Clothes, Inspire Girls, and Prav.da reduced their presence or ceased operations in Russia.
It smells like 1984 in Moscow…