A purchase price was not disclosed, however, it is known that Russia requires foreign companies to sell assets at discounts of at least 50%. Based on corporate filings, the transaction was finalized on August 2, with Stockmann JSC now owning 100% of Hugo Boss Rus, reveals Reuters.
Hugo Boss suspended its retail business in Russia in February 2022 and also paused its e-commerce activities in the Russian market and stopped advertising. The company valued the assets for sale in Russia at 27 million euros in its 2023 annual report.
Potential sell-off deals also need approval from the Russian government, which demanded that Hugo Boss retain jobs after the sale. Thus, the stores acquired by Stockmann are reportedly reopening later this year.
Stockmann in Russia operates independently to its former Finnish owner, which sold its Russian business in 2014.
