German fashion house Hugo Boss has completed the sale of its Russian business. As Reuters reports, after the start of the war in Ukraine, the brand reduced its activities in Russia, focusing on the wholesale market. Now Hugo Boss is finally exiting the Russian market, having sold its assets to the local company Stockmann.

According to official information, Hugo Boss has confirmed that its Russian subsidiary has been sold to JSC Stockmann. This company is a long-standing wholesale partner of Hugo Boss in Russia. It is noted that the details of the financial terms of the deal are not disclosed, but in the conditions of the Russian market, foreign companies often have to sell assets at a large discount.

The deal was completed on August 2, 2024. Now JSC "Stockmann" owns 100% of the shares of Hugo Boss Rus, the nominal value of which is 40 million rubles, which is equivalent to about 470 thousand US dollars.

Before the sale, the Russian business of Hugo Boss focused on the wholesale market, as the main activity of the brand in Russia was curtailed due to the outbreak of the Great War. Now the new owner, the Stockmann company, operates independently of the former Finnish owner, who will sell his Russian business after the annexation of Crimea in 2014.

The deal is part of a broader trend of Western companies scaling back their operations in Russia due to geopolitical and economic circumstances. The continuation of such sales reflects the constant changes in international business relations and the impact of war on the economic decisions of global brands.