German fashion brand Hugo Boss announced on Monday that it has sold its business in Russia to wholesale partner Stockmann. The amount of the deal was not disclosed. This decision made Hugo Boss one of the Western brands to withdraw from the Russian market due to the war in Ukraine.
Reuters reports, UNN writes.
The German fashion brand temporarily curtailed its retail business in Russia shortly after the start of Russia's invasion of Ukraine in February 2022, suspending online sales and advertising activities in the country.
We can confirm that our Russian subsidiary has been sold to Stockmann JSC, a company owned by one of Hugo Boss' long-standing wholesale partners in the country
Neither party disclosed the financial details of the deal, but Russian law requires foreign companies to sell assets at a price reduced by at least 50%.
Stockmann has not yet commented on the deal. According to the Russian corporate filings, the transaction was completed on August 2, and now Stockmann JSC owns all the shares of Hugo Boss Rus with a nominal value of 40 million rubles (USD 470,588).
Hugo Boss has come under pressure from the B4Ukraine coalition of civil society organizations, which demanded that certain goods be stopped being supplied to Russia. “As for our wholesale business, we have been fulfilling our contractual obligations to our partners
“Stockmann in Russia operates independently of its former Finnish owner, who sold his Russian business after Russia annexed Crimea in 2014.
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