A version of this article first appeared in Retail Gazette.
Zara owner Inditex has agreed to sell its stores in Russia to UAE-based Daher Group.
With more than 500 stores in Russia, Inditex was one of the biggest western retail giants to close their Russian business in the wake of its invasion of Ukraine.
The sale of its stores to Daher Group, which runs retail company Azadea that has had a partnership with Zara in the Middle East since 1998, includes the transfer of most store lease contracts and will preserve a “substantial number” of jobs, Reuters reported.
Inditex had made a €216 million provision for the wind down of the Russian business which it said “substantially covers the impact of the group’s cessation of activity”.
Rival H&M revealed in July that it would wind down its Russian business in July, while Ikea said in August it would liquidate its operations in the country.