Spanish Clothing Giant Inditex Shuts Down 500 Stores In Russia

Spain’s Inditex, the global fashion giant whose brands include Zara, announced Saturday it is “temporarily suspending” activity in its 502 stores in the Russian Federation, the company said in a statement, Al Goodman reported for CNN.

Photo Insert: Spain’s Inditex is the global fashion giant that owns Zara.

“Inditex reports that in the current circumstances it cannot guarantee the continuity of its operations and the commercial conditions in the Russian Federation,” the statement said, adding that the suspension also applies to the firm’s online sales there.

Of the 502 stores, 86 are of the Zara brand, the company said, adding that Russia accounts for about 8.5% of the company’s pre-tax profits, as measured by EBIT (earnings before income tax.) Inditex has more than 9,000 employees in the Russian Federation and is developing a “special support plan” for them, the statement said.

Inditex sent its statement to Spain’s stock market regulator, known by its Spanish initials, CNMV, on Saturday. Inditex has eight brands that sell online globally, and also in some 7,000 stores in 96 countries, according to the firm’s website.

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