As part of the winding down process, the intention is to temporarily reopen physical stores for a limited period to sell remaining inventory in Russia, H&M said in a media release.

The entire wind-down is expected to lead to costs for the H&M group amounting to a total of approximately SEK 2 billion, of which approximately SEK 1 billion will have a cash flow impact. The full amount will be included as one-time costs in the results for the third quarter 2022. A reversal of the SEK 353 million in unrealised exchange gains in respect to intragroup receivables in Russian rubles from the second quarter 2022 is included in the one-time cost.

“H&M Group has run operations in Russia since 2009. The company regrets that the business cannot continue under the current circumstances and that many colleagues are affected as a consequence. The focus now is to ensure a responsible wind down of operations and support all colleagues concerned in the best possible way over the coming months,” the release added.

“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 H&M Group.

Fibre2Fashion News Desk (KD)