Zara owner agrees to sell business in Russia
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The Spanish fashion group Inditex, which owns the clothing brands Zara, Massimo Dutti, Pull & Bear, Oysho, Bershka, Stradivarius, has agreed to sell its Russian business to the Daher Emirati group (the owner of the Dubai Mall). This is reported on site companies.
The company said in a statement that the terms of the deal will retain a significant number of jobs created by the Inditex Group in Russia, as it includes most of the store-related leases.
“Inditex and Daher have agreed to a potential partnership through a franchise agreement if the group believes in the future that new circumstances allow it to return to the Russian market,” the statement reads.
The day before, the Russian division of Inditex was transformed from Zara CIS into New Fashion, follows from SPARK-Interfax data. This structure was headed by Veronika Sokolova, one of the managers of the former Zara CIS.
At the end of the first quarter of this year, Inditex reserved €216 million to cover losses that may arise from the termination of the group’s work in Russia. Inditex in Russia has a total of 515 stores and more than 9,000 employees. The purchase of new collections for Russian stores will be carried out by a structure that has nothing to do with Inditex, reports Cinco dias with a link to an internal group document.
On March 5, Inditex announced the suspension of all stores and online platforms in Russia. Today, October 25, Izvestia, citing a source reportedthat Zara brand stores will continue to operate in Russia under the name New Fashion. However, real estate market consultants interviewed by RIA Novosti said that a new name for the stores has not yet been determined.
More details – in the material “Kommersant” “Zara will change registration”.
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