German fashion house Hugo Boss has sold its Russian business to Stockmann, a long-standing wholesale partner, for an undisclosed fee, joining numerous Western brands in exiting the Russian market due to the ongoing war in Ukraine.
Following Russia’s invasion of Ukraine in February 2022, Hugo Boss swiftly suspended its retail operations in Russia. The company also halted its e-commerce activities and ceased advertising in the country.
“We can confirm that our Russian subsidiary has been sold to Stockmann JSC, a company belonging to one of Hugo Boss’s long-standing wholesale partners in the country,” Hugo Boss stated.
Although financial details of the transaction were not disclosed, Russian regulations require foreign companies to sell assets at discounts of at least 50%. Stockmann has yet to respond to requests for comment.
Russian corporate filings revealed that the transaction was completed on August 2, transferring 100% ownership of Hugo Boss Rus to Stockmann JSC, with a nominal value of 40 million roubles ($470,588).
Hugo Boss faced pressure from organizations like B4Ukraine for continuing to supply some goods to Russia. B4Ukraine, a coalition of civil society groups, urges Western companies to sever ties with Russia.
“In terms of our wholesale business, we were fulfilling contractual obligations to our partners,” Hugo Boss stated in April. “Hugo Boss is and has been complying with existing EU sanctions at all times.”
Stockmann operates independently in Russia following its separation from its former Finnish owner, which sold its Russian business after Russia’s 2014 annexation of Crimea.
