Russian Magnificence Retailer Rive Gauche Co-Proprietor Arrested
August Meyer was arrested on Thursday in St. Petersburg on suspicion of large-scale fraud.
The American-born businessman with Russian citizenship is accused of two fraud cases totaling around 2.5 billion rubles ($ 34 million). He denies the charges and faces up to 10 years in prison.
Russian media company Kommersant Meyer and his wife and business partner Inna Meyer are suspected of improperly obtaining loans from Russian bank Sberbank just before another of their retailers, electronics chain Yulmart, ran into financial difficulties.
In February 2020, the St. Petersburg arbitration court declared Yulmart bankrupt and initiated bankruptcy proceedings.
Rive Gauche, a domestic rival of Sephora, when contacted about the Meyers case, informed the RBC media that the company’s day-to-day operations would not be affected by the co-owner’s arrest. Finstar Investment Group, another backer of Rive Gauche, also told RBC the legal case had nothing to do with the business of the Rive Gauche company.
Rive Gauche was founded in 1995 and operates over 200 stores across Russia. Last year, according to the information agency Infoline, revenues fell by 19.2 percent to 30 billion rubles ($ 400 million).
The Russian e-commerce giant Ozon is cooperating with the beauty retailer Rive Gauche
Ozon has partnered with local Sephora competitor Rive Gauche to sell perfume, beauty and accessories through its online platform.