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Zara parent company Inditex has reached an agreement for the sale of its business operations within Russia to Daher Group.
The news of the company terminating its retail business in Russia comes after Inditex paused its sales within the region on 5 March earlier this year.
It is reported that UAE-based Daher Group has “prominent” interests in the retail and real estate industry, and that the transaction of operations from Inditex to Daher will preserve a “substantial” number of jobs that were initially generated by Inditex in Russia.
In addition, Daher Group will also receive the lease contracts related to the stores. Subject to agreement by the landlords, these premises will also reportedly accommodate stores of brands owned by the buyer group, which is unrelated to Inditex.
Inditex said: “If in future Inditex considers that new circumstances allow the return of the group’s brands to this market, Inditex and the Daher group have the option of a potential collaboration through a franchise agreement.”
According to Inditex, it estimates that the provision included in the first half 2022 of its financial statements “sufficiently covers” the impact of the termination of the group’s business activities in Russia.
