Apart from licensing the name, Stockmann, which operates in Russia, has had nothing to do with the Finnish department store chain since the beginning of the war in Ukraine.
Reviva, which owns Stockmann in Russia, can legally use the iconic Stockmann name until at least 2028. The picture shows Stockmann’s department store in St. Petersburg in 2016. EPA / AOP
German clothing giant Hugo Boss has sold its Russian operations to Stockmann, which operates in the country, reports news agency Reuters.
The company had suspended retail sales in Russia shortly after the country’s attack on Ukraine in 2022. At that time, e-commerce and advertising in Russia were also stopped.
– As a result of the agreement, Hugo Boss is no longer present in Russia with its own legal entity, the company had said in a statement, according to Reuters.
Hugo Boss was pressured to stop supplying some goods by, among others, the B4Ukraine organization. It seeks to prevent the flow of financial resources to Russia that help the country in its attack on Ukraine.
– In our wholesale trade, we complied with our contractual obligations to our partners. In this context, Hugo Boss complies and has always complied with valid EU sanctions, the company had stated.
The clothing giant did not disclose the financial details of the deal. It may not have received the full price, because Russia requires foreign companies to sell their assets at a discount of at least 50 percent.
The deal is expected to be completed in the third quarter of this year.
The contract enabling the use of Stockmann’s brand name was renewed just two years before the start of the war in Ukraine. Picture from the front of Stockmann’s department store in Helsinki. Outi Järvinen, Kauppalehti
No connection to the Finnish department store chain
For Finns, naming one of our country’s most famous brands in the same sentence as Russia might sound strange. However, despite the name, it is not the same company.
Reviva Holdings LTd, which bought the Russian Stockmann business, has the legal right to use the name based on a license agreement between it and the Finnish company that goes by the name Lindex Group Oyj today.
Stockmann’s parent company Lindex Group Oyj was previously known as Stockmann Oyj Abp.
– The license agreement makes it possible to use Stockmann’s brand name in Russia. They have a full right to it under the contract, which they use as they please, the legal director of the Finnish company told Iltalehte earlier Jukka Naulapää.
In the acquisition, Reviva initially received the right of use in Stockmann’s name until 2018. An extended license agreement drawn up in 2017 gave the Russian company permission to use the name until 2023.
Two years before the start of the war in Ukraine, the license agreement was extended, and Stockmann’s name will remain in use by Reviva until 2028.
Responsible for the communications of Stockmann Finland Marja-Leena Dahlskog confirms to Iltalehti that the sale of Hugo Boss’s Russian operations is in no way related to the Finnish department store chain.
– Stockmann has not had its own operations in Russia since the business there was sold, Dahlskog states.
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