German fashion brand Hugo Boss stores will reopen in Russia this August or September after being bought by retailer Stockmann - RIA Novosti quoted information from the Shopping Center Alliance for new brands.
Other Western brands are also expanding their brands in Russia, hoping to restore business operations.
Hugo Boss and other major brands will leave the Russian market in 2022 after Western countries imposed sanctions on Russia over the conflict in Ukraine. The German company has also suspended e-commerce activities in Russia and stopped advertising in the country.
The newugo Boss will not be different, everything will remain the same, no change. All 19 stores will open at the same time, Natalia Kermedchieva, Vice President of the Shopping Center Alliance for New Brands, told RIA Novosti, noting that the brands of the stores will remain the same.
However, the legal entity will be renamed from Hugo Boss Rus to Link Fashion at the sellers request - Ms. kermedchieva pointed out.
Previously, the media reported that the German fashion company had sold its Russian business to wholesale partner Stockmann for an undisclosed amount. Neither side disclosed the financial terms of the deal.
Companies leaving Russia are required to sell their assets at a 50% discount, and must seek government permission to sell and also pay a fee to the Russian Treasury.
According to the media, the Russian government approved the sale of Hugo Boss in April. The company's records show that the deal was completed on August 2 and Stockmann JSC now owns 100% of Hugo Boss rus with a face value of 40 million rubles (more than 466,000 USD). Stockmann operates independently in Russia, with the previous owner being Finnish.
Statistics show that nearly a third of Western retailers have left Russia after the West imposed sanctions related to the Ukrainian conflict.
According to the Russian Ministry of Commerce, most foreign companies want to restore operations as soon as possible and are considering many different options.
According to the media, French luxury brand Christian Dior has submitted a petition to Russian Intellectual Property Agency - Rospatent, to register a new trademark, including Dior, Dioramour and Gem Dior. The company is also said to have submitted a request for a logo with a stylized image of the letters C and D.
Earlier this year, the American beverage giant Coca-Cola and the American Galaxy coffee chain also filed with Rospatent to register a number of brands in this country.
The Swedish multinational company IKEA has also extended its trademark rights in Russia for 10 years.
