Stores of German fashion brand Hugo Boss will reopen in Russia this month or in September after their acquisition by retailer Stockmann, RIA Novosti has reported, citing the Union of Shopping Centers for new brands. Other Western brands are extending their trademarks in the country, hoping to get back to trading. Hugo Boss joined the ranks of other major brands to exit the Russian market in 2022 after Western countries imposed sanctions on Moscow over the conflict in Ukraine.
The German company has also paused its e-commerce activities in Russia and stopped advertising there. “The new Hugo Boss will not be any different, everything will remain the same, without changes. All 19 stores will open at the same time .
..” Natalia Kermedchieva, vice president of the Union of Shopping Centers for new brands, told RIA on Monday, noting that the branding of the stores will be preserved.
The legal entity itself will be renamed from ‘Hugo Boss Rus’ to ‘Link Fashion’ at the request of the seller, she specified. Media had earlier reported that the German fashion company has sold its Russian business to wholesale partner Stockmann for an undisclosed amount. Neither party has revealed the financial terms of the deal.
Firms exiting Russia are required to sell their assets at a 50% discount, while also needing to obtain government permission for the sale, and are also required to pay a fee to the Russian treasury. Russian authorities reportedly approved the sale of Hugo Boss in Apri.