Hugo Boss closes in Croatia
Hugo Boss mono-brand stores in Croatia, in the cities of Zagreb and Split closed this month, after the German company stopped supplying the Croatian franchisee RENIMO in September 2011. According to Renimo’s Miljenko Renic Hugo Boss stopped delivery without any reason after almost 16 years of collaboration, despite the franchise agreement still in place.
“Hugo Boss stopped supplying us with goods despite being under contract. We had no choice when they put us in this position, but to protect our rights through taking court action in Germany. From September 2011 when they stopped supplying, until today, we still have not been given any explanation as to why they have ceased, it seems that Hugo Boss by dishonouring the contract are intentionally trying to destroy Renimo,” explains Renimo director Miljenko Renic. He also adds that Hugo Boss made up 80 per cent of his company’s income and therefore he is uncertain of the future of the family business and its 30 employees. A German court will decide what damages Hugo Boss must pay to its former partners.
According to CroatianTimes.com, Slovenian entrepreneur Bahtijari Bajrovic, owner of Sportina Group, the largest fashion retailer in ex Yugoslavian countries is behind the sudden breach of contract. A relatively similar situation has been unfolding in Serbia, where, Movem Company, the local Serbian franchisee of Hugo Boss which has been operating two mono brand stores for more than 10 years has been losing out to Sportina which opened in 2009 a large multi-brand store (XYZ) within Belgrade’s downtown USCE Mall. Sportina’s XYZ started with a Hugo Boss corner and is now operating a 150 sqm mono-brand shop in shop.
In Slovenia and Croatia, Sportina has been distributing several luxury brands such as Burberry, Hugo Boss, Armani, Galliano, D&G and Polo Ralph Lauren in its XYZ multibrand stores, within the largest malls in the capital cities of Ljubljana and Zagreb. In Serbia, Sportina also operates in franchising the mono-brand stores of Burberry and Emporio Armani in downtown Belgrade as well as the XYZ multibrand store at USCE Mall.