The owner of the network Accessorize decided to leave Russia

Podium Market bought the Russian business of a retailer Monsoon Accessorize, selling clothing and accessories in stores Monsoon and Accessorize, said on Wednesday the “Vedomosti” with reference to the owner of Podium Market Eduard Kitsenko. The deal was cash-strapped: Podium Market bought stock Monsoon Accessorize and got right to lease and commercial equipment, kizenko said.

According to him, Podium Market will develop for the franchise. It is necessary to optimize costs, the existing network of stores may be reduced from 70 to about 50, said kizenko. At the same time, Podium Market, sees an opportunity to open seven to ten new stores a year in “better locations”, he said.

According to a source publication, familiar with one of the parties to the transaction, Monsoon Accessorize in Russia was unprofitable in 2014. The British retailer has closed unprofitable stores and expected to bring in EBITDA in plus to the middle of 2016, but then decided to leave Russia, leaving the franchise network, he said. The cost of inventories Monsoon Accessorize, purchased Podium Market did not exceed 150-200 million rubles, was praised by the head of FPB Investment Bank Nikolay Gabyshev.

The press service of the British Monsoon Accessorize to the request for comments not replied. The representative of the Russian Accessorize readdressed the issues at Podium Market.

Monsoon Accessorize company entered the Russian market in 2002. The first stores operated under the franchise. Independent network development in Russia the company started in 2004, buying the stores from the franchisee “Hanford”.

In 2015 from Russia took a few foreign retailers. Finnish Stockmann sold its network of Russian stores of the company Reviva Holdings Ltd., owning in Russia franchise network Debenhams. The Spanish chain has closed all Desigual mono-brand stores in Russia. A similar decision was made by the American brand American Eagle Outfitters. In 2014 about the withdrawal of the Russian market announced the British brand New Look, River Island and British American Esprit.