Fashion retailer H&M joins TJX, others in exiting Russia

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H&M, the world’s second-biggest fashion retailer, saidOn MondayIt had made the decision to close its business. in RussiaJoin a growing number of companies to fully benefit from the opportunity exitingthe country and sent its shares down 1 percent.

TheCompany suspends its business in Russia inIt is best to start early March inThe aftermath of WesternSanctions against MoscowAfter its invasion of Ukraine. RussiaH&M’sThe sixth largest market was being served by the company, and it was increasing its store counts there while decreasing physical stores inThere are many other markets.

“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” Chief Executive Helena Helmersson said inA statement.

“We are deeply saddened about the impact this will have on our colleagues,” Helmersson saidHowever, he did not provide any further details. A spokesperson for the company saidAbout 6,000 employees inThe country would be affected.

TheThe entire wind-down will cost approximately 2 billion Swedish crowns (US$191.3 million), of which about 1 billion crowns will have a cash flow impact, H&M said. TheThe full amount will also be included in one-time charges inThe results for the third quarter.

H&M intends to temporarily reopen physical stores to sell remaining inventory in Russia.

TheThe 170 stores in the physical world will be affected by the shutdown inThe country and its online sales channels, a spokesperson said.

SeveralOther retailers Inditex, AdidasHave halted all sales inWhile fashion is based in the United States, it’s still a country. retailerTJX Poland’sBiggest fashion trends retailerLPP voted to sellTheir businesses in Russia.

H&M’sBiggest rival ZaraOwner InditexLast week,, informed shareholders that operations would be suspended at the moment.

“We are in contact with all actors that have been affected by the suspended measure and we are exploring different alternatives… But at this moment there is no other decision than to continue to monitor the situation,” said InditexCEO Oscar Garcia Maceiras.

HitSupply chain and sanctions issues RussiaParallel imports have been legalized. These allow retailers to import products without the consent of the trademark owner.

ReportingBy Anna RingstromAnd Supantha Mukherjee in Stockholm, Corina Pons in MadridEditing by Niklas PollardAnd Emelia Sithole-Matarise

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