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Zara finds a way to stay in Russia — RT Business News

Spanish clothing conglomerate Inditex, which owns clothing brands such as Zara, Massimo Dutti, Pull & Bear, Oysho, Bershka and Stradivarius, has reached a preliminary agreement to sell its Russian business.

Inditex has reached a first agreement for the sale of its activities in the Russian Federation to the Daher group… The terms of the transaction, subject to government approval, will make it possible to preserve a significant number of jobs generated by the Inditex group in Russia , as it includes the assignment of most store-related leasessaid Inditex in a statement posted on its website on Tuesday.

Sources say the Daher Group already owns the Zara and Massimo Dutti franchise rights for the Middle East.

Inditex suspended its Russian operations on March 5 and the deal with Daher would mean the company would leave the country altogether. However, the company hinted that its brands could still return to Russia via a “potential collaboration through a franchise agreementwith Daher.

Earlier, Forbes reported, citing company sources, that four brands from Inditex, Zara, Pull&Bear, Bershka and Stradivarius, would return to Russia next spring under new names.

Inditex closed its stores in Russia shortly after the start of the Russian military operation in Ukraine. Previously, more than 500 stores of various brands of the Spanish holding company operated in the country, which brought it about 8.5% of global profits. Inditex’s losses in the event of a complete withdrawal from the Russian market were estimated at $300 million.

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