Some worries for H&M!
The Swedish fast fashion giant is, reportedly, facing Russian criminal investigation for allegedly avoiding 3.1 billion rubles or US $ 42 million of customs duties.
As reported in Bloomberg, the Federal Customs Service opened the case against the fashion brand’s Russian unit for not including license fees that it pays to its Swedish parent in declarations while importing goods from 2016 to 2019.
It has also been reported that the retailer paid 3.1 billion rubles or US $ 42 million to cover the disparity following an audit.
Meanwhile, H&M, which has over 150 stores in Russia, has confirmed about the investigation, but couldn’t reveal too many details as it is yet to receive any further information from local authorities.
The Federal Customs Services too declined to comment on the same.
If the criminal investigation succeeds in finding evidence related to the matter, it may not only result in huge fines, but may also put some senior executives behind bars.
H&M shares since have slid by as much as 1.7 per cent.
Stay connected for all further updates!
