Reuters remindedthat Hugo Boss announced that it had suspended its operations in Russia after the invasion of Ukraine in February 2022, like other Western brands. E-commerce sales and all forms of advertising of the German company in Russia were also to be suspended.
The German fashion giant announced the sale of its Russian subsidiary
“We can confirm that our Russian subsidiary has been sold to Stockmann JSC, a company owned by one of Hugo Boss' long-term wholesale partners in the country,” the German company's representatives said, as quoted by Reuters. Interestingly, Stockmann is to maintain its operations in Russia independently of its former Finnish subsidiary. owner. He also sold the Russian part of his business in 2014 after the annexation of Crimea. Currently, Stockmann department stores in the east are managed by Russian businessman Gennady Levkin.
The financial terms of the transaction were not disclosed. However, Russia requires foreign companies to sell their assets at a discount of at least 50 percent. According to the agency, Russian documents indicate that the sale took place on August 2. Stockmann JSC is currently in possession of 100 percent of Hugo Boss Rus, which is valued at 40 million. rubles – over 470 thousand dollars.
Pressure was put on Hugo Boss' company
Hugo Boss was convinced to make the final decision to cut off all deliveries of goods to Russia by, among others, the B4Ukraine organization. It is a coalition of civil society groups that are engaged in forcing Western companies to completely cut off cooperation with the Russian market.
“As far as our wholesale business is concerned, we have complied with our contractual obligations towards our partners,” the German company said in April. “In this context, Hugo Boss always complies with existing sanctions EU”.