Nike has reportedly not renewed its franchise agreements in Russia.
According to the Vedomosti daily, the head of the Inventive Retail Group (IRG) – which operates Nike stores in Russia through its subsidiary Up And Run – said the company would no longer supply goods there.
"As supplies of goods run out IRG will be forced to close all of its shops under this brand," IRG President Tikhon Smykov was quoted as saying in a letter to employees.
Smykov said they had ended up "in a situation where that business cannot exist.
Up And Run operates 37 Nike stores across Russia.
Nike announced in March that it would temporarily suspend operations at all its Nike-owned and -operated stores in Russia due to Russia's invasion of Ukraine.
"We are deeply troubled by the devastating crisis in Ukraine and our thoughts are with all those impacted, including our employees, partners and their families in the region," the athletic clothing giant said. according to The Wall Street Journal.
Russian Premier League club Spartak Moscow said earlier in May that Nike had terminated its kit sponsorship with them because they will not be taking part in European competitions next season.
Spartak had been sponsored by Nike since 2005.
Starbucks previously announced that it is pulling out of the Russian market and McDonald's said it would see its Russian business after more than three decades of operations there.
"Starbucks has made the decision to exit and no longer have a brand presence in the market," Starbucks told FOX Business.
"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," McDonald's said in a statement.
Fox Business' Danielle, Wallace, Daniella Genovese and Reuters contributed to this report.