German fashion house Hugo Boss has officially exited the Russian market.
On Monday, Reuters reported that Hugo Boss sold its operations to long-time wholesale partner Stockmann. This move is part of a broader exodus of Western brands from Russia, driven by the ongoing war in Ukraine.
Hugo Boss suspended its retail and e-commerce operations in Russia shortly after the country invaded Ukraine in February 2022. The company also halted all advertising activities in the region.
Now, after more than a year of suspended operations, Hugo Boss has sold its Russian subsidiary to Stockmann JSC, a company that has been a key wholesale partner for the brand in Russia.
While the financial terms of the deal have not been disclosed, Russian regulations require foreign companies to sell their assets at significant discounts—at least 50% below market value.
According to Russian corporate filings, the deal was finalized on August 2, with Stockmann JSC acquiring 100% of Hugo Boss Rus for a nominal value of 40 million roubles (approximately $470,588).
Hugo Boss has faced criticism from organizations like B4Ukraine, a coalition of civil society groups that pressures Western companies to cut ties with Russia. These groups have condemned companies for continuing to supply goods to Russia despite the war and ensuing sanctions.
In response, Hugo Boss stated in April that it had been fulfilling its contractual obligations to partners while adhering to EU sanctions.
Stockmann, which now operates independently from its former Finnish parent company after selling its Russian business following Moscow's annexation of Crimea in 2014, did not immediately comment on the acquisition.
Hugo Boss is the latest in a series of Western brands to leave Russia.
