The stores of the fashion brand Germany Hugo Boss will reopen in Russia in August this year or in September after being acquired by the retailer Stockmann - RIA Novosti cited information from the Union of Shopping Centers for new brands as saying.
Other Western brands are also expanding their brands in Russia, hoping to restore business operations.
Hugo Boss and other major brands left the Russian market in 2022 after Western countries imposed a sanction on Russia due to the conflict in Ukraine. The German company also temporarily suspended e-commerce activities in Russia and stopped advertising in the country.
“Hugo Boss new will be no different, everything will remain the same, no 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 Novosti, noting that the brand of the stores will remain the same.
However, the legal entity will be renamed from “Hugo Boss Rus” to “Link Fashion” at the request of the seller - Kermedchieva pointed out.
Earlier, the media reported that the German fashion company had sold its business in Russia to its wholesale partner Stockmann for an undisclosed amount. Neither side revealed the financial terms of the agreement.
Companies leaving Russia were required to sell their assets at a 50% discount, and also had to obtain permission from the government to sell and 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 agreement was completed on August 2 and Stockmann JSC now owns 100% of Hugo Boss Rus with a nominal value of 40 million rubles (over 466,000 USD). Stockmann in Russia operates independently of its previous owner, a Finnish company.
Statistics show that nearly a third of Western retailers have left Russia since Western countries imposed sanctions related to the conflict in Ukraine.
According to the Russian Ministry of Trade, most foreign companies want to restore operations as soon as possible and are considering various options.
According to the media, the luxury brand Christian Dior of France has submitted an application to the Russian intellectual property agency - Rospatent, to register a new trademark, including Dior, Dioramour and Gem Dior. The company also reportedly submitted an application for a logo featuring stylized letters C and D.
Earlier this year, the American giant Coca-Cola and the American coffee chain Starbucks also submitted applications to Rospatent to register several trademarks in the country.
The Swedish multinational IKEA has also extended its trademark rights in Russia for 10 years.
