- Hennes & Mauritz AB ( OTCPK:HNNMY ) is exiting Russia Business, citing the operational challenges and unpredictable future in the country, as the war in Ukraine continues - WSJ .
- The company paused all sales in Russia at the beginning of March in the wake of Moscow’s invasion of Ukraine and on Monday confirmed that it would initiate a process of winding down its business in the country.
- “After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” Chief Executive Helena Helmersson said.
- The company will temporarily reopen physical stores for a limited period to sell remaining inventory in Russia.
- Departure from Russia would result in one-off costs of around KRW2B ($192M), which will be booked in the third quarter.
- 181 stores with ~7,500 employees, represented around 10% of group operating profit before the coronavirus pandemic, in the 2019 financial year.
- Last month, companies including Nike ( NKE ) and Cisco Systems ( CSCO ) announced plans to leave Russia. Others, including McDonald’s ( MCD ) have sold their operations in the country.
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Hennes & Mauritz AB (HNNMY) initiates a process of winding down its business in Russia