The company closed its stores in the sanctioned country in March last year

German sportswear and footwear brand Adidas may reopen its stores in Russia on November 1, news outlet Mash reported on Friday on its Telegram channel, citing sources within the company’s Russia unit.

According to the report, the company has signed a contract with a Lebanese branch of investment company Daher Group, which owns one of the largest shopping centers in the world, the Dubai Mall. The same firm manages Fashion and More Management DMCC, a UAE-registered company which recently bought Zara, Bershka, Pull&Bear and Massimo Dutti stores in Russia from Spanish fashion giant Inditex.

Mash reports that recruitment for the new Adidas stores is scheduled to begin in early fall to get everything ready for the launch in November. There is no information as to whether Adidas stores will retain the brand name or reopen under a new one, like former Inditex stores did.

Earlier this week, reports emerged that Adidas was also in talks with Turkish firm FLO Retailing on the potential sale of its Russian business. According to sources among real estate consultants who spoke to Vedomosti news outlet, the deal was expected to be finalized this fall, and envisaged full rebranding of Adidas’ Russian stores.

FLO Retailing, which operates brands such as the US Polo Association, Lumberjack, and Reno, last year bought the Russian stores of sportswear giant Reebok, which have since opened in the country under the name Sneaker Box.

Neither FLO Retailing nor Daher Group have so far commented on the reports.

Adidas joined a number of Western brands last year in suspending operations in Russia due to sanctions. The company closed its retail outlets and online stores in March 2022. In October last year, Adidas said it had decided to permanently wind down its business in the country. The decision had significantly affected the company’s profits, which slumped by nearly $110 million in the third quarter of 2022.

For more stories on economy & finance visit RT’s business section

(RT.com)