Inditex has reached an agreement regarding the sale of its Russian business, including 502 stores, to Daher Group. The real estate company, based in the United Arab Emirates, already holds local rights to Inditex franchising. The move allows the fashion giant to leave Russia, but keep the door open. The UAE and other Gulf states are considered friendly countries by the Kremlin, so Arab companies are encouraged to do business in Russia. A significant part of the approximately 9,000 jobs created by Zara’s parent company in Russia would be taken over by the acquirer.
"Inditex has reached an initial agreement for the sale of its business in the Russian Federation to Daher group," said the spokesperson for Inditex. "The terms of the transaction, subject to government approval, will enable the preservation of a substantial number of jobs generated by Inditex Group in Russia, as it includes the transfer of most of the lease contracts related to stores. Subject to agreement by the landlords, these premises will accommodate stores of brands owned by the buyer group, unrelated to Inditex. The transaction will mean the termination of Inditex’s operations in the Russian Federation, after sales were paused on March 5. If in future Inditex considers that new circumstances allow the return of the Group’s brands to this market, Inditex and the Daher group have the option of a potential collaboration through a franchise agreement."
