In order for the Spanish company to join the lengthy list of European firms that have abandoned the Russian market in protest against the war in Ukraine, which began in late February, the corporation, the owner of the Spanish company Zara, decided to sell Zara activities in Russia to the UAE Al-Daher Group.
According to a statement from Inditx, which was cited by the Bloomberg News Agency today, Tuesday, the agreement will keep a significant number of jobs in Zara Prussia’s operations, while Al-Daher Group will continue to hold the majority of the branches’ leasing contracts in Russia.
Industx anticipates that the allocations it closely watched during the first half of the year will cover the effects of its exit from Russia. In June, the Spanish company announced the allocation of 216 million euros (215 million dollars) to cover the closure of its branches in Russia and Ukraine as a result of the conflict.
In March of last year, Inditx said that due to the battle, company has shut down all 502 of its branches and online sales in Russia.
Around 8 people were from Russia.
Given that it is the second-largest market in the globe for the Spanish company in terms of the number of branches, 5% of the overall Enditx profits before deducting taxes and perks are allocated to it.
In accordance with the terms of the agreement, the Al-Daher Group will manage the branches in Russia under its brand; however, Indetex may continue to manage the branches under a system of concession to use the brand for the Spanish company in the event that it decides to reenter the Russian market in the future.
It is interesting that the Al-Daher Group, based in the United Arab Emirates, has business ties to Azadia, a Lebanese corporation that oversees the Middle East’s Indetex franchise rights.
Zara for Clothes has agreed to sell Deir Group its Russian assets.
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