H&M opens again in Russia - and then withdraws completely

Created: 07/19/2022, 14:44

By: Patricia Huber

More and more companies are giving up their business in Russia.

Now the fashion group H&M is drawing a line – but before that it will open its doors again.

STOCKHOLM - A large part of western companies have closed their business in Russia.

With the beginning of the Ukraine war, the withdrawal from the country around Prime Minister Vladimir Putin also started.

Now the Swedish fashion group H&M is also withdrawing completely from Russia.

Given the current operational challenges and an unpredictable future, the H&M Group has decided to initiate settlement of its business in the country.

The group announced this in Stockholm.

H&M says it's "impossible" to continue doing business in Russia

"After careful consideration, we consider it impossible to continue our business in Russia given the current situation," said H&M CEO Helena Helmersson.

Your group expects that the entire transaction will cost an estimated two billion Swedish crowns - the equivalent of almost 190 million euros.

The withdrawal will therefore be felt in the form of one-off costs in the third quarter of 2022.

According to its own statements, H&M recently employed around 6,000 people in Russia.

In the statement, company boss Helmersson was "deeply saddened by the consequences this step will have for colleagues".

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H&M stores in Russia were closed - now they are opening again

But before H&M is finally over in Russia, there is another big comeback.

Because in the course of the settlement process, the branches are now to be reopened temporarily and for a limited time in order to sell remaining stocks.

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According to the H&M Group, it has been active in Russia since 2009.

In addition to the fashion chain Hennes & Mauritz, it also includes other brands such as COS, Weekday and Arket.

At the beginning of March, just a few days after the Russian invasion of Ukraine, the H&M Group announced that it would stop selling in Russia until further notice.