German fashion clothing manufacturer Hugo Boss has agreed to sell its Russian business to wholesale partner Stockmann. The deal will end the company's presence in Russia.
Hugo Boss is finally leaving the Russian Federation
It is noted that Hugo Boss did not disclose the deal's financial terms. Russia requires that foreign companies sell assets at at least 50% discounts.
As a result of the agreement, Hugo Boss will no longer be present in Russia with its own legal entity, the fashion house said in a statement.
The Russian government commission on the sale of foreign assets approved the deal. It still needs to be approved by a national European body and is expected to close in the third quarter of this year.
It is worth noting that Hugo Boss, along with many chain stores, suspended its retail business in Russia shortly after the Russian Federation launched a full-scale invasion of Ukraine in February 2022. The company also suspended its e-commerce activities in the Russian market and stopped advertising.
Hugo Boss was under pressure due to the continued supply of some goods to Russia, which demanded that Western companies sever ties with Russia.
As for our wholesale business, we fulfilled our contractual obligations to our partners. In this context, Hugo Boss has always complied and is complying with the current EU sanctions, the German manufacturer said.
Stockmann is a Finnish retail company and a chain of clothing and home goods stores of the same name.
The exit of Western business from Russia
The German building materials manufacturer Knauf is ultimately winding down its work on the Russian market. The manufacturer did not give specific reasons, pointing out that the decision was made after Knauf had been working in the Russian market for over 30 years.
At the same time, the EU plans to force a well-known banking group to close down its business in Russia. The European Central Bank is preparing to order the Italian UniCredit to reduce business in the Russian Federation.
