German fashion house Hugo Boss has completed the sale of its Russian operations to its wholesale partner Stockmann.
The two companies reached an agreement on the deal in April 2024.
According to the Russian news agency Interfax, the transaction was registered in the Unified State Register of Legal Entities on August 2.
Hugo Boss was quoted by Reuters as saying;
“We can confirm that our Russian subsidiary has been sold to Stockmann JSC, a company belonging to one of Hugo Boss’s long-term wholesale partners in the country.”
The government’s subcommittee on foreign investment has given the green light for the sale of Hugo Boss to Stockmann, reports Interfaxwhich referred to a statement made by Russian Deputy Minister of Industry and Trade Viktor Yevtukhov in the spring of 2024.
The retailer’s stores in Russia are expected to reopen in the third quarter of the year after the deal closes.
Financial details of the transaction were not disclosed. Russia is known to require foreign entities to sell their assets at a minimum discount of 50%.
The move comes after Hugo Boss shut down its retail operations in Russia in March 2022 in response to the invasion of Ukraine.
The suspension included a halt on e-commerce activities and advertising in the Russian market, it said. Reuters.
According to the Russian corporate database, Stockmann now owns 100% of Hugo Boss Rus, which is valued at 40 million rubles ($470,588).
Hugo Boss has been criticised by organisations such as B4Ukraine, a coalition urging Western companies to cut ties with Russia, for continuing to supply goods to Russia.
“With regard to our wholesale activities, we have fulfilled the contractual obligations towards our partners. In this context, Hugo Boss complies and complies at all times with the existing EU sanctions,” Hugo Boss stated in April 2024.
“Hugo Boss completes sale of Russian operations to Stockmann” was originally created and published by Retail Insight Networka brand of GlobalData.
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