Spanish clothing retailer Mango recently issued a statement regarding its operations in Russia and Ukraine. In it, the company promises that the safety of its employees in Russia and Ukraine comes first.
In Ukraine, after a thorough analysis of current safety protocols, Mango has started to gradually reopen its stores – currently nine, of which four are owner-operated and five are franchises. In this way, the company meets the wishes of its franchisees and direct teams on site and supports them in the economic and social reactivation of the country. More stores are expected to reopen in the coming weeks. On February 24, Mango temporarily closed 14 stores.
franchises in Russia
In March, the brand temporarily suspended its operations in Russia, closing its 55 own stores and online platform. Unlike other brands that have exited the market, Mango plans to franchise the company’s own stores to various franchise partners in the coming months.
The first two stores are expected to be handed over in the next few weeks and plans to allocate 22 more stores in June and July as the company continues negotiations to find the best option for its employees and partners in the country Find.
The workforce of the company’s own stores will be taken over by the Mango partners, as well as the obligations with other suppliers in the country. There are currently 53 Mango franchise stores in Russia.
Russia is one of the company’s top five markets, accounting for 8 percent of pre-interest and tax (EBIT) earnings at the end of 2021. The company has also decided to create a provision of EUR 20 million due to the impact of the situation in Russia.
Since the conflict began, Mango has safeguarded the interests of its teams in Ukraine and Russia by continuing to pay them salaries and offer legal counsel. Specifically in Ukraine, the company also offered legal assistance and a new job in another country to all those who had decided to leave the country.