Yahoo Finance H&M to wind down Russian business over Ukraine invasion
Fashion giant H&M is to wind down its business in Russia, becoming the latest international business to exit the country following its invasion Ukraine.
The Sweden-based retailer initially halted sales in Russia at the start of March.
On Monday, the company told investors it has now “decided to initiate a process of winding down the business in the country”.
It blamed its decision on “current operational challenges and an unpredictable future” in Russia.
H&M said it operations in Russia, which were first launched in 2009, will be temporarily reopening to sell the remaining stock.
Helen Helmersson, chief executive officer of H&M Group, said: “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.”
Russia accounted for around 4% of its global sales according to its latest annual report and employed more than 6,000 people in the country.
The retailer added it will take a 2 billion Swedish krona (£161 million) hit in the third quarter as a result.
H&M follows the likes of McDonalds, which sold all its Russian restaurants in May after more than 30 years operating in the country.
