Russia’s leading clothing retailer Gloria Jeans plans to move all its production facilities out of Russia and Ukraine owing to the deterioration of the business environment in both countries.
Owner Vladimir Melnikov (pictured) noted that around 80% of the company’s production is already located abroad, in particular in Asia, and there is a possibility the remainder will be withdrawn during 2015.
According to Melnikov, Gloria’s factories in eastern Ukraine have been occupied by “bandits”, which has resulted in the suspension of activities and lay-offs of workers.
Gloria said it has no plans to close its local stores; however, the company’s headquarters in Rostov-on-Don will move to Hong Kong. Melnikov sees no prospects for further development of the company in Russia owing to the country’s current economic and political policy.
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