H&M Group has decided to ‘wind down’ its business in Russia as the Ukrainian invasion continues to rage on.
In March earlier this year the fashion retailer announced that it would pause all sales in Russia, but given ‘current operational challenges’ and an ‘unpredictable future’, the company will now begin to completely remove itself from the country.
As part of the winding down process, the group intends to reopen physical stores for a limited period of time to sell the remaining inventory in Russia.
READ MORE: Marriot permanently removes itself from Russia amid Ukraine invasion
“The entire wind-down is expected to lead to costs for the H&M group amounting to a total of approximately 2 BSEK, of which approximately 1 BSEK will have a cash flow impact,” H&M Group added.
The exit follows in the footsteps of many other brands including KFC, Pizza Hut, Starbucks and McDonald’s.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia. We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years”, H&M Group CEO Helena Helmersson said.
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