MADRID (AP) — Zara owner Inditex has reached a deal to sell its Russian business to a Lebanese retail and real estate conglomerate, the Spanish fashion giant said in a statement to authorities on Tuesday. country competition.
The buyer is Daher Group and the potential purchase is pending approval from Russian authorities, Inditex said, without disclosing financial details.
Inditex ceased operations in Russia on March 5, shortly after Russian President Vladimir Putin ordered the invasion of Ukraine in late February. After other Western brands, the fashion retailer closed its 502 stores and halted online sales.
Tuesday’s announcement marks the end of Inditex’s operations in Russia, although the retailer said it would consider returning through a franchise collaboration with Daher if market circumstances change.
The statement to the CNMC, the commission that monitors competition in Spain, made no direct reference to the war in Ukraine.
The sale agreement includes the transfer of most of the leases of its existing stores, which Inditex says will preserve a significant number of jobs generated by the group.
Founded in 1975 by Amancio Ortega, Inditex’s rapid success was based on its ability to deliver new fashion collections in record time. It currently operates several brands globally, including Massimo Dutti, Bershka, Pull & Bear and Oysho.
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