Turkey’s FLO in talks to take over Reebok’s stores in Russia – chairman

By Ceyda Caglayan

ISTANBUL (Reuters) – Turkish shoe retailer FLO Magazacilik is in talks to purchase greater than 100 shops owned by health model Reebok in Russia, FLO Chairman Mehmet Ziylan mentioned on Monday, as Western corporations rush to adjust to sanctions over the Ukraine battle.

Ziylan mentioned a deal had not been finalised, denying a report in Russian every day Kommersant that the corporate had already taken over the enterprise.

“We’re speaking, however there may be nothing extra particular,” Ziylan instructed Reuters.

Kommersant cited a supply near FLO Retailing as saying the deal had been finalised and greater than 100 Reebok shops in Russia had handed to the Turkish firm’s management.

Genuine Manufacturers Group which owns Reebok was not instantly obtainable to remark as a result of early hour in the US.

In March, the U.S. firm suspended all branded shops and e-commerce operations in Russia.

Kommersant cited analysts as saying the deal, which might give FLO its first outlets within the nation, might be price as a lot as 1.5 billion roubles ($24.8 million).

Ziylan mentioned FLO at the moment makes wholesale gross sales to Russia, however doesn’t have its personal shops there.

The deal is prone to stir issues that corporations in Russia and nations not concerned in Western sanctions are snapping up prized property as Western corporations rush to adjust to sanctions over the Ukraine battle, in addition to threats from the Kremlin that foreign-owned property could also be seized.

Final month Anheuser-Busch InBev mentioned it plans to exit Russia by promoting its curiosity in a three way partnership with Turkish brewer Anadolu Efes that operates in Russia and Ukraine and expects to take a $1.1 billion cost consequently.

Requested about investing in Russia when many worldwide manufacturers had left the nation following Russia’s invasion of Ukraine, Ziylan mentioned the corporate will observe the Turkish authorities’s coverage on the problem.

“Our nation doesn’t have an embargo there. We are going to proceed so long as our nation doesn’t inform us to cease,” he mentioned.

NATO member Turkey, a Black Sea neighbour of Russia and Ukraine, has good ties with the warring nations and has opposed Western sanctions on Moscow.

Ziylan declined to say the dimensions of a doable deal.

(Writing by Daren Butler; Modifying by Josephine Mason and David Evans)