Seven months after the huge company that owned the brand “Zara” shut down its operations there in the wake of the invasion of Ukraine, the Spanish clothing company “Industx” announced on Tuesday that it will sell all of its stores in Russia, following in the footsteps of many other major brands around the world.
A statement issued by the company said that it had entered into an “initial agreement” to sell its business in Russia to the company “Daher Group”, which has commercial interests in the field of retail and real estate.
The deal “will mean discontinuing Inditx activities in the Russian Federation,” the business continued.
” But she indicated that if “Inditx saw in the future that new circumstances have been new to allow the brands of the group to this market, Industx and Zahir Group have a potential cooperation option through a trade privileges agreement. ”
The Russian market, the second-largest after Spain and accounting for 10% of the company’s sales, was where Inditx made the decision to close its 502 stores and end online sales in March of last year.
“Inditx” declared that it will provide a unique assistance package for its workforce of over 9,000 employees in Russia.
She emphasised that by transferring rental contracts to other companies controlled by the “Daher Group,” she will be able to keep a “substantial number” of jobs after selling her firm in Russia.
According to an informed source who wished to remain anonymous and spoke to AFP, the “Daher Group,” based in the UAE, is the owner of the “Inditx” commercial privileges in the Middle East.
Additionally, there are “Paul and Bear” and “Massimo Doti” “Inditx” signage.
In the first half of 2022, the company’s net earnings totaled 1. 8 billion euros, an increase of 41% over the corresponding period in 2021.
In order to prepare for the loss of the Russian market during the first quarter, “Andtex” claimed that the launch of new stores and increased online sales help to make up for the closure of its stores in Russia. The firm has set aside a financial reserve of $ 216 million.
The Russian government has suspended the “Zara” brand’s owner and forced it to sell all of its outlets.
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