German company Hugo Boss has announced that it is selling its Russian business to its wholesale partner Stockmann. This agreement will terminate the brand’s presence in Russia
This was reported by Reuters.
Hugo Boss, like many other retailers, has suspended its retail operations in Russia due to the full-scale invasion of Ukraine. In addition, the company also announced that it has suspended its e-commerce and advertising activities in the Russian market.
“As a result of the agreement, Hugo Boss will no longer be present in Russia under its own legal entity,” the company said in a statement.
Viktor Yevtukhov, Deputy Minister of Industry and Trade, said that a government commission had approved the sale, one of the conditions for which was that all jobs would be preserved.
The sale is expected to close in the third quarter of 2024 after completion of the necessary legal and administrative procedures. At the same time, the retailer will open stores in Russia.
At the same time, Hugo Boss did not disclose the details of the deal. But as you know, Russia requires foreign companies to sell assets at a discount of at least 50%.
It is worth noting that Hugo Boss, like many other fashion houses, suspended its retail business in Russia after the full-scale invasion of Ukraine in February 2022. The company also suspended its e-commerce activities in the Russian market and stopped advertising.
As previously reported, Ceetrus, a subsidiary of the French chain Auchan, has sold its business in the Russian Federation.
