FLO in talks to buy Reebok’s stores in Russia

A MAJOR Turkish shoe retailer is in talks to buy dozens of stores owned by fitness brand Reebok in Russia, FLO Mağazacılık’s chairperson said Monday.

FLO Mağazacılık’s deal to take over more than 100 Reebok outlets has not been finalized, its chairperson of the board, Mehmet Ziylan, told Reuters, denying a report in Russian daily Kommersant that the company had already taken over the business.

“We are talking, but there is nothing more definite,” Ziylan said.

Kommersant cited a source close to FLO as saying the deal had been finalized and more than 100 Reebok stores in Russia had passed to the Turkish company’s control.

Western companies have been rushing out of Russia since it started its invasion of Ukraine. In March, Rebook suspended all branded stores and e-commerce operations in Russia.

Kommersant cited analysts as saying the deal, which would give FLO its first shops in the country, could be worth as much as 1.5 billion rubles ($24.8 million).

Ziylan said FLO currently makes wholesale sales to Russia but does not have its own stores there.

Last month Anheuser-Busch InBev said it plans to exit Russia by selling its interest in a joint venture with Turkish brewer Anadolu Efes that operates in Russia and Ukraine and expects to take a $1.1 billion charge as a result.

Asked about investing in Russia when many international brands had left the country following Russia’s invasion of its southern neighbor, Ziylan said the company will follow the Turkish government’s policy on the issue.

“Our country does not have an embargo there. We will continue as long as our country does not tell us to stop,” he said.

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

Ankara has maintained careful rhetoric and has been undertaking considerable mediation efforts to end the conflict. Ziylan declined to say the size of a possible deal.