Spanish clothing conglomerate Inditex has secured approval from the Russian government to sell its business in Russia, RBK news outlet reported on Wednesday citing Deputy Minister of Industry and Trade Viktor Yevtukhov. Inditex is one of the world’s largest clothing retailers, which owns brands such as Zara, Massimo Dutti, Pull & Bear, Oysho, Bershka, and Stradivarius.
According to the deputy minister, the permission for the sale was granted on March 30. The deal will see all of Inditex retail sites in Russia pass to a new owner, Fashion and More Management DMCC, “which has an office in a friendly country,” Yevtukhov noted, without providing further details. According to RBK, a company with the same name is registered in one of the UAE freezones, the Dubai Multi Commodities Centre. Earlier media reports, however, claimed that the buyer was the Lebanese Daher Group, which is considered the owner of one of the globe’s largest shopping centers, the Dubai Mall.
According to the official, the new owner will open Inditex stores under new brand names: Maag, Dub, Ecru, and Vilet.
“Collections with new tags have already been sewn and brought to Russia. All stores are ready for opening, which should take place in April-May ,” Yevtukhov added.
Prior to that, Russia accounted for about 8.5% of the company’s global profits, with more than 500 stores of different brands operating in the country.
This article was originally published by RT.