Fashion house Hugo Boss has sold its business in Russia to a new owner
Financial details of the deal have not yet been disclosed by either party, but it is known that the deal was completed on August 2.
The German company Hugo Boss sold its Russian business to a long-time wholesale partner, Stockmann JSC. About this informs Reuters. The amount of the deal was not disclosed.
“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.”, the company said in a statement.
The financial terms of the deal remain undisclosed, but it is worth noting that Russia requires foreign companies to sell assets at a discount of at least 50%.
According to Russian corporate documents, the deal was completed on August 2, and Stockmann JSC now owns 100% of Hugo Boss Rus with a nominal value of 40 million rubles ($470.58 thousand).
German fashion house Hugo Boss suspended its retail business in Russia almost immediately after Moscow invaded Ukraine in February 2022. The company also stopped e-commerce in the Russian market and halted advertising activities.
After the start of the conflict in Ukraine, many Western companies decided to leave the Russian market due to sanctions and ethical considerations. Among them is Hugo Boss, which has ceased all its operations in Russia, including retail sales, e-commerce and advertising. Having sold its Russian business to Stockmann JSC, Hugo Boss continues to follow a policy of reducing its presence on the Russian market.
Stockmann JSC, the new owner of Hugo Boss Rus, is the company’s long-standing partner in Russia. Owning all Hugo Boss assets in the country will allow Stockmann JSC to continue operations under new management.
