Citing a weak rouble and troubling macroeconomic situation, the Estonian fashion retailer Baltika is planning to sell its Russian subsidiaries to Ellipse Group for approximately €400,000. Under the terms of a franchise agreement, Ellipse will continue to sell Baltika products on the Russian market for five years.
By exiting the Russian retail market, Baltika will be able to focus “entirely on the profit-making Baltic retail markets and developing other sales channels, like wholesale, franchise and e-com,” the retailer’s CEO, Meelis Milder, said. The company started closing unprofitable stores on the Russian market at the beginning of the year. Ellipse bought Baltika’s Ukrainian network in 2014.
