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CHAMPION OF THE DAY
Daher Group acquires
Zara owner’s Russian unit
Brand could return to market
via franchise deal with buyer
Daher Group, based in the UAE and founded by Lebanese investors, has concluded an initial agreement to acquire the Russian business of Spain-based giant fashion retailer Inditex, the owner of the Zara brand.
Zara, the multinational retail clothing chain, is represented in the Middle East and North Africa region by Beirut-based Azadea Group which represents other global brands as well. Azadea is also owned by members of the Daher family.
Inditex said in a statement: “If, in the future, Inditex considers that new circumstances allow the return of the Group’s brands to this market, Inditex and the Daher Group have the option of a potential collaboration through a franchise agreement.”
Inditex, which closed its 502 stores in Russia earlier this year due to the Russian Ukrainian war, also said: “The terms of the transaction, subject to government approval, will enable the preservation of a substantial number of jobs generated by Inditex Group in Russia, as it includes the transfer of most of the lease contracts related to stores. Subject to agreement by the landlords, these premises will accommodate stores of brands owned by the buyer group, unrelated to Inditex.”
The value of the deal was not disclosed but Inditex said that the provision recorded in its financial statements for the first half of 2022 sufficiently covers the impact of the termination of its Russian business. The provision, valued at €216 million ($217 million), aims to cover all expected expenses for 2022 in Russia and Ukraine.
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Oct 27, 2022
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