Fashion Group Sells its Interests in Russia

Fashion Group Sells its Interests in Russia

The Global Fashion Group (GfG) will no longer operate in Russia, Belarus and Kazakhstan as it disposes of its interests in these countries.

Global Fashion Group has received EUR95m (US$100.7m) of proceeds (net of transaction costs) in addition to the cash held in the Lamoda business as at 30 September 2022. As a result, the group’s pro forma cash as at 30 September 2022, adjusted for the sale proceeds, was EUR550m.

GFG says it will continue to focus on capturing the long-term growth opportunity in its EUR230bn fashion and lifestyle market across LATAM, SEA and ANZ. 

Across its three platforms, 12m active customers generated EUR1.6bn of net merchandise value through 30m orders in the twelve months to September 2022.  

Christoph Barchewitz and Patrick Schmidt, co-CEOs, GFG said: “We extend our deepest gratitude to the Lamoda team for their unequivocal dedication to their customers over the years. We are handing the business over to a new owner who is committed to preserving Lamoda’s responsible operations, culture and 8,000-strong employee base. 

“Looking ahead, rising e-commerce penetration will continue to drive long-term growth in GFG’s markets. We are committed to delivering on our vision as the number one online fashion and lifestyle destination in LATAM, SEA and ANZ. We have the team, customer base, brand partnerships, infrastructure and financial strength to drive success, while being people and planet positive”. 

Last year, Global Fashion Group announced it was joining Global Fashion Agenda’s Strategic Partner Group to help support the organisation’s aim to spearhead the fashion industry towards a more sustainable future.

Source: Just Style