Hugo Boss has reached an agreement to sell its Russian operations to its wholesale partner Stockmann, marking the end of its presence in Russia just over two years after suspending operations there.
Following Moscow’s deployment of troops to Ukraine in February 2022, Hugo Boss, like many retail chains, halted its activities in Russia, including both physical retail and e-commerce, and ceased advertising in the market.
The Russian government’s commission overseeing foreign asset sales has greenlit the deal, with Deputy Minister of Industry and Trade Viktor Yevtukhov stating that one stipulation is the preservation of all jobs.
Financial details of the transaction were not disclosed, but Russian regulations typically require foreign companies to sell assets at discounts of at least 50%.
“In light of the agreement, Hugo Boss will no longer have a direct presence in Russia through its legal entity,” the fashion house stated.
The sale, pending approval by a European regulatory authority, is anticipated to conclude in the third quarter of this year.
Hugo Boss faced criticism for continuing to supply certain goods to Russia, prompting scrutiny from organizations like B4Ukraine, a coalition advocating for Western companies to sever ties with Russia.
“In our wholesale operations, we were meeting our contractual obligations with our partners,” Hugo Boss explained. “Throughout, Hugo Boss has consistently adhered to existing EU sanctions.”
