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The H&M Group has announced its decision to begin winding down its business in Russia over the coming months, following current operational challenges and an “unpredictable” future.
The company will temporarily reopen physical stores for a limited period of time to sell remaining inventory in Russia. The entire wind-down is expected to cost H&M approximately 2 BSEK (£162m), of which approximately 1 BSEK (£81m) will have a cash flow impact.
H&M said the business cannot continue under the current circumstances and that many colleagues are affected as a consequence.
As previously announced on 2 March 2022, H&M paused all sales in Russia. The group said the focus now is to ensure a “responsible wind down” of operations and support all colleagues concerned “in the best possible”.
Helena Helmersson, H&M Group CEO, said: “After careful consideration, we see it as impossible given the current situation to continue our business in Russia.
“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years.”
