Hugo Boss Exits Russia: Sale to Wholesale Partner Stockmann Finalized

Hugo Boss has officially sold its Russian business to long-standing wholesale partner Stockmann. The transaction comes amid ongoing pressure on Western companies to sever ties with Russia due to the war in Ukraine. Financial details remain undisclosed, but Russian laws require asset sales at a minimum 50% discount.

Hugo Boss has officially sold its Russian business to wholesale partner Stockmann for an undisclosed fee, the German fashion house confirmed on Monday. This move aligns Hugo Boss with other Western brands exiting the Russian market over the Ukraine war. The German company had already suspended its retail and e-commerce operations in Russia soon after the February 2022 invasion.

'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. Financial details were not disclosed, but Russia mandates that foreign companies sell their assets at a discount of at least 50%. Stockmann did not provide immediate comment.

Russian corporate filings indicated that the deal closed on Aug. 2, with Stockmann JSC now owning 100% of Hugo Boss Rus, valued nominally at 40 million roubles ($470,588). Hugo Boss had faced pressure from organizations like B4Ukraine to cut all ties with Russia. In April, Hugo Boss stated it was complying with EU sanctions and only fulfilling contractual obligations to its partners. Stockmann operates independently in Russia, following its separation from its Finnish owner after the 2014 Crimea annexation. ($1 = 85.0000 roubles)

(With inputs from agencies.)