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Bloomberg
Swedish retailer Hennes & Mauritz AB will start winding down its operations in Russia, having halted all sales in the country in March after Russia’s attack on Ukraine.
The Stockholm-based company expects to book costs of 2 billion kronor ($190 million) from the process, of which about 1 billion kronor will have a cash-flow impact, it said in a statement.
The group plans to reopen physical stores in Russia for a limited period of time to sell remaining inventory.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,†Chief Executive Officer Helena Helmersson said.
H&M’s Russian business accounted for about 4% of its 199 billion kronor in sales during the last financial year. The company has operated in the country since 2009.