Hugo Boss sells its Russian business to its wholesale partner Stockm… | kbnmart

German fashion company Hugo Boss said on August 5 that it had sold its business in Russia to its partner Stockmann for an undisclosed fee, joining the ranks of Western brands that have exited the Russian market due to the war in Ukraine.

The German fashion company suspended its retail operations in Russia shortly after Moscow invaded Ukraine in February 2022. It also halted e-commerce activities in the Russian market and halted advertising.

“We can confirm that our Russian subsidiary has been sold to Stockmann JSC – a subsidiary of one of Hugo Boss’ long-standing wholesale partners in the country,” Hugo Boss said.

Neither party disclosed the financial terms of the deal, but Russia requires foreign companies to sell their assets at a discount of at least 50%. Stockman did not immediately respond to a request for comment.

The company’s Russian filings showed the deal closed on August 2 and Stockmann JSC now owns 100% of Hugo Boss Rus at a nominal value of 40 million rubles ($470,588).

Hugo Boss has come under pressure from organizations such as B4Ukraine over its continued supply of some goods to Russia. B4Ukraine is a coalition of civil society organizations that seeks to force Western companies to cut ties with Russia.

In April, Hugo Boss stated: “With regard to our wholesale business, we have been fulfilling our contractual obligations towards our partners. In this context, Hugo Boss always complies with the EU sanctions.”

Stockman operates in Russia independently of its former Finnish owner, who sold his Russian business after Moscow annexed Crimea in 2014.