Hugo Boss Is Finally Leaving Russia After the German Fashion House Agrees to Sell Russian Business to Stockmann

By Jace Dela Cruz

Apr 25, 2024 03:55 AM EDT

German fashion house Hugo Boss announced Wednesday that it had agreed to sell its Russian operations to wholesale partner Stockmann, marking the end of its presence in Russia after it suspended its operations there more than two years ago. 

FILES - View taken on September 28, 2011
FILES - View taken on September 28, 2011 shows the logo of German clothing designer Hugo Boss at an outlet in Berlin. German fashion house Hugo Boss on April 26, 2012 posted a solid 15-percent increase in profits for the first quarter driven by double-digit sales growth in the United States and China.
(Photo : JOHN MACDOUGALL/AFP/GettyImages)

Hugo Boss Sells its Russian Business

According to Reuters, Hugo Boss' decision to sell its Russian business came after the company and many store groups halted their retail businesses in Russia following Moscow's invasion of Ukraine in February 2022. The company also ceased its e-commerce operations in the Russian market and halted advertising efforts.

According to Interfax, Russia's government commission on foreign asset sales has approved the deal, with Deputy Minister of Industry and Trade Viktor Yevtukhov indicating that preserving all jobs is among the conditions set forth.

While the financial details of the transaction remain undisclosed, Russian regulations require foreign companies to sell assets at discounts of at least 50%.

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No More Legal Presence in Russia

In a statement, Hugo Boss said that the company "will no longer be present in Russia with its own legal entity," as a result of the agreement.

Interfax reported that the sale was still subject to approval by a national European authority, but it is expected to close in this year's third quarter.

READ MORE: Russia Warns of More Damage and Deaths After US Approves $61 Billion Military Aid Package for Ukraine

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