Hugo Boss agrees to sell Russian business to wholesale partner Stockmann

24/4/2024 17:26

        Hugo Boss has agreed to sell its Russian business to wholesale partner Stockmann, the German fashion house said on Wednesday, a deal that will end its presence in Russia a little over two years after suspending operations there.
        
        Hugo Boss, along with many store groups, suspended its retail business in Russia soon after Moscow despatched its army to Ukraine in February 2022. It also paused its e-commerce activities in the Russian market and stopped advertising.
        
        Russia's government commission on foreign asset sales has approved the deal, Interfax reported, citing Deputy Minister of Industry and Trade Viktor Yevtukhov, with one of the conditions being that all jobs are preserved.
        
        Hugo Boss did not disclose financial terms of the deal. Russia demands that foreign companies sell assets at discounts of at least 50%.
        
        "As a result of the agreement, Hugo Boss will no longer be present in Russia with its own legal entity," Hugo Boss said in a statement.