H&M, the Swedish fashion brand, has decided to halt operations in Russia after pausing all sales there in March.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” said Helena Helmersson, CEO of H&M Group, 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.”
Since 2009, the H&M Group has had a presence in Russia. The company said it regrets that the business cannot continue under the current conditions and that many colleagues may be impacted as a result.
As part of the winding down process, the company will reopen physical stores in Russia for a limited time to liquidate leftover inventory.
The retail giant estimates its exit from Russia to incur one-time costs of roughly 2 billion Swedish kronor, or around $192 million. It said that the expenses will be included in the third quarter.
Since the commencement of the war in February, around 1,000 multinational companies have limited their operations in Russia. Many of them have experienced considerable asset forfeiture while larger losses are predicted in the future.
Picture Credits: Reuters
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