Russia agrees to Daher’s acquisition of Inditex subsidiary

The Russian government has announced the approval for the sale of New Fashion JSC, formerly Zara CIS, by the Spanish retail group Inditex to Fashion And More Management DMCC.

The decision was confirmed to Russian media outlet RBC by the country’s deputy minister of industry and trade Viktor Evtukhov.

It comes just over one year after Inditex suspended its operations and temporarily closed all of its 500 plus stores in Russia following the region’s “military special operation” in Ukraine.

Initially, Inditex said it would agree to transfer 245 of its stores to the Middle Eastern investment company Daher Group, while the rest would close.

Now, the sale includes the entirety of Inditex’s Russian businesses, including its Zara stores, with the company’s trading platforms to also be handed over to its new owners, which have offices in “friendly countries”, Evtukhov noted.

Under the new ownership, the retailer is set to reopen, albeit with stores holding new branding and names; Maag, Dub, Ecru and Vilet.

The minister added: “Collections with new tags have already been sewn and brought to Russia.

“All stores are ready for the opening, which should take place in April to May 2023.”

The sum of the acquisition was not disclosed by the minister.

Following Russia’s decision to enter Ukraine, other fashion retailers have been implementing similar moves, including Sephora and H&M, the latter of which struck up a sale process in August 2022 after confirming it was “winding down” operations in the region.