The owner of Zara, Inditex, has announced plans to sell Russian retail locations
In March, Inditex made the decision to close its 502 locations in Russia, which was its second-largest market after Spain and represented 10% of total sales.
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Seven months after ceasing operations in Russia due to the invasion of Ukraine, Spanish fashion giant Inditex announced on Tuesday that it will sell its operations there.
The Daher group, which has significant holdings in the retail and real estate industries, and Inditex have signed an initial agreement for the sale of Inditex's company in the Russian Federation, according to a statement from Inditex.
"Subject to government clearance, the conditions of the transaction will enable the preservation of a significant number of employment generated by Inditex Group in Russia, as it involves the transfer of the majority of the lease contracts relating to stores," it added.
In March, Inditex made the decision to close its 502 locations in Russia, which was its second-largest market after Spain and represented 10% of total sales.
Following the invasion of Ukraine and the installation of economic sanctions, several of the largest Western brands, including Inditex's main rival H&M, also ceased their activities in Russia.
The sale of Inditex's company to Daher Group "would spell the termination" of its operations in Russia, according to Inditex.
Inditex and the Daher group have the option of a potential collaboration through a franchise agreement "if in the future Inditex thinks that new conditions allow the return of the Group's brands to this market," the statement continued.
In the first half of 2022, Inditex, which also owns Massimo Dutti and other brands, reported a net profit of 1.8 billion euros, a 41-percent rise from the corresponding time in 2021.
