More and more companies are giving up their business in Russia. Now the fashion group H&M is drawing a line.
The Swedish fashion group H&M is withdrawing from Russia. Given the current operational challenges and an unpredictable future, the H&M Group has decided to initiate settlement of its business in the country. The group announced this in Stockholm.
“After careful consideration, given the current situation, we consider it impossible to continue our business in Russia,” said H&M boss Helena Helmersson. Your group expects that the entire transaction will cost an estimated two billion Swedish crowns – the equivalent of almost 190 million euros. The withdrawal will therefore be felt in the form of one-off costs in the third quarter of 2022.
According to the H&M Group, it has been active in Russia since 2009. In addition to the fashion chain Hennes & Mauritz, it also includes other brands such as COS, Weekday and Arket. At the beginning of March, just a few days after the Russian invasion of Ukraine, the group announced that it would stop selling in the huge country until further notice. As part of the settlement process, the branches are now to be reopened temporarily and for a limited period of time in order to sell remaining stocks. (dpa)