Zara owner Inditex Group to sell its Russian business to Lebanese Daher
The Spanish group Inditex, which has suspended its work in Russia and owns the brands Zara, Massimo Duti, Bershka, Pull&Bear, Oysho, Stradivarius, is going to sell its Russian business to the Lebanese Daher Group, writes fashionunited.ru.
“Inditex has reached an initial agreement to sell the Russian business to Daher Group. The terms of the deal, which will have to be approved by the government, will allow the preservation of a significant number of jobs created by the Inditex group in Russia,” the company said in a statement.
The Daher family owns the Azadea group, a Beirut-based retail company that franchises over 40 international brands. Among them, in addition to the Inditex brands, are Adidas, Deichmann, Calzedonia, Mango, Kiko Milano, Gap and others. The group owns 600 stores in 13 countries, including Algeria, Bahrain, Egypt, Ghana, Jordan, Saudi Arabia, Lebanon, Oman, Qatar, UAE.
It is noted that according to the agreement of the companies, shops of other brands developed by Daher can be opened in the areas that have so far been occupied by Inditex stores.
Inditex brand stores suspended operations in Russia on March 5, 2022, 502 Russian stores were closed, including 86 Zara stores, and online sales were suspended.
It is assumed that four chains - Zara, Pull & Bear, Bershka and Stradivarius - can resume work in the Russian Federation after rebranding. All names will be new. Inditex brands such as Massimo Dutti, Oysho and Zara Home will completely leave the Russian market.
According to the Unified State Register of Legal Entities, the key structure of Inditex in Russia - Zara CIS JSC - has changed its name and CEO. The new name from October 24 is New Fashion JSC. The company is headed by Veronika Solovieva instead of Lusian Dorobantu.
Zara is one of the largest players in the Russian fashion retail market. According to the company's financial statements under RAS, the revenue of New Fashion JSC in 2021 amounted to 57,2 billion rubles, net profit - 6,4 billion rubles.
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