Inditex, the Spanish multinational clothing giant, is selling its Russian business to UAE-based Daher Group, after closing 502 stores in Russia.
Inditex is the world’s largest fashion retailer, operating seven concepts – Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home, with 6,460 stores and online sales in 215 markets.
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.
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.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.