diff --git a/rhodecode/config/middleware.py b/rhodecode/config/middleware.py
--- a/rhodecode/config/middleware.py
+++ b/rhodecode/config/middleware.py
@@ -53,8 +53,8 @@ from rhodecode.lib.middleware.vcs import
 from rhodecode.lib.plugins.utils import register_rhodecode_plugin
 from rhodecode.lib.utils2 import aslist as rhodecode_aslist
 from rhodecode.subscribers import (
-    scan_repositories_if_enabled, write_metadata_if_needed,
-    write_js_routes_if_enabled, create_largeobjects_dirs_if_needed)
+    scan_repositories_if_enabled, write_js_routes_if_enabled,
+    write_metadata_if_needed)
 
 
 log = logging.getLogger(__name__)
@@ -305,7 +305,6 @@ def includeme(config):
     settings['default_locale_name'] = settings.get('lang', 'en')
 
     # Add subscribers.
-    config.add_subscriber(create_largeobjects_dirs_if_needed, ApplicationCreated)
     config.add_subscriber(scan_repositories_if_enabled, ApplicationCreated)
     config.add_subscriber(write_metadata_if_needed, ApplicationCreated)
     config.add_subscriber(write_js_routes_if_enabled, ApplicationCreated)
diff --git a/rhodecode/subscribers.py b/rhodecode/subscribers.py
--- a/rhodecode/subscribers.py
+++ b/rhodecode/subscribers.py
@@ -130,12 +130,12 @@ def scan_repositories_if_enabled(event):
     This is subscribed to the `pyramid.events.ApplicationCreated` event. It
     does a repository scan if enabled in the settings.
     """
-    from rhodecode.model.scm import ScmModel
-    from rhodecode.lib.utils import repo2db_mapper, get_rhodecode_base_path
     settings = event.app.registry.settings
     vcs_server_enabled = settings['vcs.server.enable']
     import_on_startup = settings['startup.import_repos']
     if vcs_server_enabled and import_on_startup:
+        from rhodecode.model.scm import ScmModel
+        from rhodecode.lib.utils import repo2db_mapper, get_rhodecode_base_path
         repositories = ScmModel().repo_scan(get_rhodecode_base_path())
         repo2db_mapper(repositories, remove_obsolete=False)
 
@@ -229,33 +229,6 @@ def write_js_routes_if_enabled(event):
             f.write(jsroutes_file_content)
 
 
-def create_largeobjects_dirs_if_needed(event):
-    """
-    This is subscribed to the `pyramid.events.ApplicationCreated` event. It
-    does a repository scan if enabled in the settings.
-    """
-    from rhodecode.lib.utils import get_rhodecode_base_path
-    from rhodecode.lib.vcs.backends.hg import largefiles_store
-    from rhodecode.lib.vcs.backends.git import lfs_store
-
-    repo_store_path = get_rhodecode_base_path()
-
-    paths = [
-        largefiles_store(repo_store_path),
-        lfs_store(repo_store_path)]
-
-    for path in paths:
-        if os.path.isdir(path):
-            continue
-        if os.path.isfile(path):
-            continue
-        # not a file nor dir, we try to create it
-        try:
-            os.makedirs(path)
-        except Exception:
-            log.warning('Failed to create largefiles dir:%s', path)
-
-
 class Subscriber(object):
     """
     Base class for subscribers to the pyramid event system.