Apr 25, 2023
Spain's Tendam hands Russian shops to Belarusian company
Apr 25, 2023
Spanish fashion group Tendam will reopen its stores in Russia through a Belarusian company, its CEO told Reuters on Tuesday, following the model of Mango which transferred its stores to Russian franchisees last year.
Spain's third-largest fashion retailer has kept its 19 stores in Russia closed since March last year, alongside many Western companies that suspended operations in response to Russia's invasion of Ukraine and ensuing sanctions imposed by the European Union and United States on Moscow.
Tendam agreed in March with Belarusian company ALC Belvirineja to hand over its business in Russia under a franchise agreement, Tendam CEO Jaume Miquel told Reuters in an interview on the sidelines of the World Retail Congress in Barcelona.
Miquel said he did not know whether the company would return to Russia in the future or continue to operate there through franchises.
The company had about 400 employees in Russia and the country accounted for 2% of its sales before the war. Overall, Tendam has 1,805 stores - 1,200 of which it operates itself - in Europe, the Middle East and Latin America.
Last year Mango started to transfer the 55 shops it was directly operating in Russia to local partners. While 30 shops remain permanently closed, Mango said in March it was present in 90 stores in Russia under franchise agreements.
Zara owner Inditex opted to exit Russia completely, agreeing to sell its business there to the UAE-based Daher Group in October, after closing 500 stores in March 2022.
Only 245 Inditex stores will reopen following the deal, but the new brands will be completely different from Inditex's brands, the company said in its annual report. As part of the agreement, Inditex did not rule out returning to the country if circumstances change.
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