The H&M clothing store is seen in Times Square in Manhattan, New York November 15, 2019. — Reuters pic
Monday, 18 Jul 2022 4:41 PM MYT
STOCKHOLM, July 18 — Swedish fashion retailer H&M said today it had decided to wind down operations in Russia having paused all sales there since March following Moscow’s invasion of Ukraine.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” H&M Group CEO Helena Helmersson said in a statement.
“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication,” she added.
H&M, which has operated in Russia since 2009, said it would reopen stores in Russia “for a limited period of time to sell remaining inventory” as part of the exit process.
It said the entire wind-down was expected to cost the group around 2.0 billion Swedish kronor (RM854 million), of which around 1.0 billion would have a cash flow impact.
“The full amount will be included as one-time costs in the results for the third quarter 2022,” the company said. — AFP