The Spanish textile giant Inditexstore owner Zaraamong other brands, today announced an agreement with the Emirati group Daher to sell its business in Russiawhere it has about 500 stores that have been closed since the beginning of March, in response to the Russian invasion of Ukraine.
As reported on Tuesday by the company to the National Securities Market Commission (CNMV), the Spanish stock market supervisor, the agreement includes the transfer of most of the premises occupied until now by its stores, which will allow it to maintain “a substantial part of jobs”.
Inditex highlights that the terms of the operation, subject to prior administrative authorization, will allow preserving “a substantial part” of the jobs that the group held in Russia.
The idea is to transfer most of the premises occupied until now by the Inditex stores in Russia so that these, after agreement with the owners, will house the future points of sale of brands owned by the purchasing group, “totally unrelated to Inditex ”.
The transaction will mean the cessation of Inditex’s operations in Russia after the suspension of its commercial activity on March 5following the Russian invasion of Ukraine and the imposition of sanctions.
In the event that future circumstances allow Inditex to return to Russia, the Spanish firm claims to have reached an agreement with Daher to study a collaboration between the two companies through a franchise agreement.
Inditex estimates that the provision recorded in the first half of 2022, of 216 million euros, substantially covers the impact of the Group’s cessation of activity in Russia.
The goodbye of the Spanish firm
The closure of the stores in Russia and the payment of the payroll of its thousands of employees meant that Inditex spent close to 20 million euros per month.
In addition to Zara, the Spanish group operated in Russia with the brands Bershka, Pull&Bear, Stradivarius, oysho, Massimo Dutti Y Zara Home and added more than half a thousand stores, all on a rental basis.
Until the outbreak of war in Ukraine, Inditex obtained 8.5% of its operating income from the Russian market.
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