Spanish retailer Mango has announced plans to franchise its stores in Russia to local partners.
It comes after the company said in March it would temporarily cease its operations in Russia following the country’s invasion of Ukraine.
Since then, 55 company-owned stores and its online platform in Russia have been inactive.
Mango said in a statement Friday that “in view of the uncertainty regarding the geopolitical situation and in order to safeguard the interests of its 800 employees in the country”, it has “ceased to operate directly in Russia”.
It said the first two stores will be handed over to franchise partners this week, with plans to assign 22 more in June and July.
Mango said the workforce of company-owned stores as well as commitments to suppliers in the country will be absorbed by Mango’s partners.
Currently, 53 Mango franchises operate in Russia.
At the end of 2021, Russia was one of Mango’s top five markets, and represented 8 percent of EBIT. Mango said it has recognized a provision of 20 million euros due to the impact of the situation in Russia.
Mango also said Friday it is gradually reopening stores in Ukraine after closing them following the Russian invasion.
Currently, Mango has reopened nine stores in Ukraine, four of which are company-owned, and five of them franchises.