“After careful consideration, we consider it impossible to continue our activities in Russia in the current situation,” said Elena Helmersson, general manager of the Swedish clothing group Henness & Maurits (H&M).
As part of its exit from the Russian market, the group intends to “temporarily open its stores after they have been closed since the beginning of March in order to sell the remaining goods.”
And H&M, which began operations in Russia in 2009, employs about six thousand people.
“We are deeply saddened by the impact this will have on our colleagues and we are very grateful to them for their hard work and dedication,” said Elena Helmerson.
According to the group, this withdrawal “will cost it a total of two billion Swedish kronor (about 189 million euros), including a decrease in liquidity of approximately one billion kronor”, noting that “losses will be settled in the accounts of the third quarter of the year.”
After the war between Russia and Ukraine, several Swedish companies suspended their activities in Russia. Carmaker Volvo has suspended sales and production at its plant in Kaluga in central Russia, and telecommunications company Ericsson has announced it will stop deliveries to Russian customers. The giant IKEA group also decided to “cut back its activities in Russia and Belarus,” which it had previously suspended after the outbreak of the war.
Source: El Nashra