H&M group begins winding down in Russia
Swedish fashion retailer H&M said on Monday it had decided to wind down operations in Russia, after pausing all sales there in March following Moscow’s invasion of Ukraine.
The company cited “current operational challenges and an unpredictable future” as the basis for the decision.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” H&M Group CEO Helena Helmersson said in a statement.
“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication,” she added.
H&M, which has about 6,000 employees in Russia and has operated in the country since 2009, said it would reopen stores in Russia “for a limited period of time to sell remaining inventory” as part of the exit process.
Most recently, US sportswear giant Nike completely cut ties with the market, while LVMH-owned beauty retailer Sephora sold its Russian subsidiary.
The latest spate of exits comes ahead of new laws set to be introduced in Russia, which will allow the state to seize assets of companies that have suspended business in the country.
