The Swedish fashion chain H&M has reopened ten stores in Russia causing large queues in order to liquidate the inventory after announcing their departure from the country. These reopenings have caused huge queues, especially in the capital.
“They are currently open. nine H&M stores, 7 in Moscow and 2 in St. Petersburg, plus a COS in Moscow”, commented a company source to the Russian agency TASS.
At the end of July, the chain put its business up for sale for 169 million euros in Russia after announcing his withdrawal due to the Russian military campaign in neighboring Ukraine and proceeded this week to liquidate stocks before leaving the country for good.
[Las estrategias de Inditex, Mango y H&M cuajan: el comercio ‘online’ de moda en Europa se disparó en 2021]
The would-be H&M buyer would acquire the leasing rights to around 170 stores in 65 cities across the country, a 57,700-square-meter distribution center and $210 million in merchandise reserves.
According to Russian media, 40% of all the chain’s stores in Russia have lease contracts until 2050, while 50% have contracts until at least 2030.
The merchandise reserves would allow supplying the network of stores managed by a new owner for a total of 30 weeks.
However, in addition to the profits, the new owner will also have to take on the lawsuits of some owners of the premises who do not receive their payment after the closure of the stores and the announcement of the withdrawal of the Swedish company from the Russian market.
Potential buyers of H&M include major Russian fashion networks, such as Melon Fashion Group, with more than 840 stores under the Zarina, Befree, Love Republic and Sela brandsand the Sportmaster group, with more than 600 stores.
However, the decision to stop supplying the company’s productions makes it almost impossible to sell the entire network to a single buyer, so probably H&M is forced to sell merchandise stocks and leasing packages separately.
Follow the topics that interest you