MADRID (HPD) — Inditex, the company that owns Zara and other clothing stores, has reached an agreement to sell its businesses in Russia to a Lebanese retail and real estate conglomerate, the Spanish fashion house reported Tuesday in a statement. declaration to the competition authorities.
The sale to the Daher Group still needs to be approved by Russian authorities, Inditex said, without giving financial details.
Inditex ceased business in Russia on March 5, shortly after Russian President Vladimir Putin ordered the invasion of Ukraine on February 24. Following the example of other Western companies, Inditex closed 502 stores in Russia and ceased internet sales there.
The announcement marks the end of Inditex’s business in Russia, although the company has indicated it could return through a joint franchise with Daher if the circumstances arise.
The statement to the CNMC, the commission that oversees economic competition in Spain, does not directly mention the war in Ukraine.
The agreement covers most existing store leases. According to Inditex, this will protect a substantial number of jobs generated by the conglomerate.
Founded in 1975 by Amancio Ortega, Inditex has been highly successful thanks to its ability to offer new fashion collections in record time. It currently operates several brands worldwide, such as Massimo Dutti, Bershka, Pull & Bear and Oysho.