Swedish fashion chain H&M has announced its complete withdrawal from Russia. “Given current operational challenges and an unpredictable future, the company today announces that it has decided to initiate a process of winding down the business in the country,” the company wrote.
H&M had already paused all stores in Russia in March, but they will be reopened for a short time to sell off remaining stock.
The H&M brand has been doing business in Russia since 2009. H&M Group includes a number of other brands, such as COS, Monki, Weekday, & Other Stories and Arket. The withdrawal applies to the entire company.
H&M states that the withdrawal will incur costs of SEK 2 billion (€190 million). The full amount will be included as one-time costs in the results for the third quarter of 2022.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia. We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication. Furthermore, we wish to thank our customers for their support throughout the years,” said Helena Helmersson, CEO of H&M Group.
