German fashion house Hugo Boss announced Wednesday that it had agreed to sell its Russian operations to wholesale partner Stockmann, marking the end of its presence in Russia after it suspended its operations there more than two years ago.
Hugo Boss Sells its Russian Business
According to Reuters, Hugo Boss' decision to sell its Russian business came after the company and many store groups halted their retail businesses in Russia following Moscow's invasion of Ukraine in February 2022. The company also ceased its e-commerce operations in the Russian market and halted advertising efforts.
According to Interfax, Russia's government commission on foreign asset sales has approved the deal, with Deputy Minister of Industry and Trade Viktor Yevtukhov indicating that preserving all jobs is among the conditions set forth.
While the financial details of the transaction remain undisclosed, Russian regulations require foreign companies to sell assets at discounts of at least 50%.
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No More Legal Presence in Russia
In a statement, Hugo Boss said that the company "will no longer be present in Russia with its own legal entity," as a result of the agreement.
Interfax reported that the sale was still subject to approval by a national European authority, but it is expected to close in this year's third quarter.
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