Inditex, the Spanish multinational clothing giant, is selling its Russian business to UAE-based Daher Group.
The Russian government has approved the deal and Daher Group will open stores in Russia under the brands Maag, Dub, Ecru, and Vilet.
Daher Group will open new stores in April and May, according to various media reports.
The Spanish retailer closed its 502 stores in Russia earlier this year due to the Russia-Ukraine war.
Inditex is the world’s largest fashion retailer, operating 7 concepts - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home - with 6,460 stores and online sales in 215 markets.
Under the agreement, Daher will operate in Russia under its own brand but if at some future stage, Inditex wishes to return the country, the deal outlines the possibility of doing so through franchises, Bloomberg reported.
The value of the deal was not revealed. However, Inditex the provision recorded in its financial statements for H1 2022 sufficiently covers the impact of the termination of its Russian business.
(Writing by Seban Scaria email@example.com; editing by Daniel Luiz)