Mango Russia

History

2022: Transfer of Russian assets to local franchisee

In June 2022, it became known about the decision of the chain of clothing stores Mango to transfer its Russian business to franchisees. The Spanish company decided to leave the Russian market after 23 years of work on it.

Mango owners have signed an agreement with a number of franchise partners to transfer their business to them in Russia with the preservation of jobs of 800 employees. The company has sold all 55 stores, with the amount of the deal kept secret. The process of transferring the business will take place in the coming months, writes El Pais on June 19, 2022.

Clothing chain Mango transfers Russian assets to local franchisee

According to the company, the first two outlets will be transferred to various partners by the end of June 2022, another 22 in the coming months. Mango has allocated $20 million to cover expenses related to Russia.

Mango partners will continue to purchase products from the company, but they will have to deal with transportation to Russia. Franchisees also assume obligations arising from premises lease agreements

Mango temporarily suspended its activities in Russia in March 2022, including online sales. Then it was reported that Mango temporarily ceases its work in the country "due to the current difficulties associated with transportation and supplies." Almost four months later, the group's sources said that the company was leaving the Russian Federation due to "international geopolitical uncertainty" caused by the hostilities in Ukraine.

Before the closure of stores, Russia was one of the five largest markets for the Spanish brand. Russia accounted for about 8% of global sales. By June 2022, Mango had 126 stores in Russia. In Ukraine, Mango owns 14 stores. Since the outbreak of hostilities in the country, the network has closed all its points of sale for security reasons.^[1]

Notes

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