27th May 2024
Massimo Dutti, Moscow
Barcelona News Business Catalonia News Madrid News Main News Retail

Spanish retail giant Inditex to sell its Russian business

Zara stores owner Inditex has reached an agreement to sell its Russian business to a Lebanese retail and real estate conglomerate, the Spanish fashion giant announced in a statement to Spain’s competition authorities, the Comisión Nacional de los Mercados y la Competencia (CNMC), on Tuesday.

The buyer is Daher Group and the potential purchase is pending approval from Russian authorities, Inditex said, without disclosing financial details.

‘The terms of the transaction, subject to government approval, will enable the preservation of a substantial number of jobs generated by Inditex Group in Russia, as it includes the transfer of most of the lease contracts related to stores,’ the statement from Inditex read. ‘Subject to agreement by the landlords, these premises will accommodate stores of brands owned by the buyer group, unrelated to Inditex.’

Inditex halted its business in Russia on 5 March, shortly after Russian President Vladimir Putin ordered the invasion of Ukraine at the end of February. Following other western brands, the fashion retailer closed its 502 shops and stopped online sales.

‘If in future Inditex considers that new circumstances allow the return of the Group’s brands to this market, Inditex and the Daher group have the option of a potential collaboration through a franchise agreement,’ the statement continued.

Inditex also said that it estimates that the ‘provision included in the first half 2022 financial statements sufficiently covers the impact of the termination of the Group’s business activities in the Russian Federation’.

The statement to CNMC made no direct reference to the war in Ukraine.

Founded by Ortega in 1975 in La Coruña, in the northwestern region of Galicia, today the Inditex group comprises of globally recognised fashion brands including Zara, Bershka, Stradavarius, Pull and Bear, Oysho and Massimo Dutti. Its annual sales are over 20 billion euros.

Massimo Dutti, Moscow
Library image of a Massimo Dutti store in Moscow

ALSO READ: Focus: Spain’s biggest company, Inditex – and the challenge facing Marta Ortega.

ALSO READ: Spanish fashion giant Inditex joins rivals in closing 502 Russian stores.

Sign up for the FREE Weekly Newsletter from Spain in English.

Please support Spain in English with a donation.

Click here to get your business activity or services listed on our DIRECTORY.

Click here for further details on how to ADVERTISE with us.

 

Recent Posts

Israel orders Spain’s consulate in Jerusalem to not assist Palestinians

News Desk

Four dead, 21 injured in Mallorca as restaurant roof collapses

News Desk

Spanish police recover 4th of five Francis Bacon paintings stolen in Madrid in 2015

News Desk

Israel recalls ambassador to Spain over Palestine statehood & threatens ‘serious consequences’

News Desk

Spain, Ireland & Norway to recognise Palestinian state on 28 May

News Desk

Spain withdraws ambassador to Argentina ‘definitively’, as Milei refuses to apologise

News Desk

Leave a Comment