Inditex, the Spanish multinational clothing retailer headquartered in Galicia, would shut down all of its stores in Venezuela over upcoming weeks as a potential conflict of interest between the world’s largest fashion retailer and its local partner Phoenix World Trade has emerged out of the blues, a spokesman for Phoenix World Trade said later last week.
In point of fact, the Venezuelan operation of Inditex, the owner of long-hailed fashion brands likes of Zara, Pull & Bear and Bershka, was taken over back in the 2007s by Phoenix World Trade, a Panama-based company owned by Venezuelan businessman Camilo Ibrahim, while the latest store closures came forth as a part of Inditex move to roll back smaller outlets across the world in a bid to expand its flagship stores.
More than 1,200 Inditex stores were expected to shut down by end-2021, Inditex said earlier in the year, as up to 700 stores might be shuttered down in Europe and another 100 in America alongside 400 stores across other parts of the world.
Inditex to exit Venezuelan operation
Meanwhile, referring to Inditex’s recent approach to scale back operations in smaller outlets, the Spanish fashion Goliath’s Venezuelan partner Phoenix World Trade said in a statement, “Phoenix World Trade is re-evaluating the commercial presence of its franchised brands Zara, Bershka and Pull & Bear in Venezuela, to make it consistent with the new model of integration and digital transformation announced by Inditex.
The five stores which remain open… will cease to operate in coming weeks”. Nonetheless, Ibrahim’s group was reportedly planning to re-open Zara stores in the country under a new brand, named as Lola.