Gloria Jeans has moved its headquarters to Dubai and will shut down its manufacturing operations in Russia
Gloria Jeans, Russia’s largest clothing manufacturer and retailer, has moved its headquarters from Moscow to Dubai. The decision was made by the company’s owner, Vladimir Melnikov, who explained that it was necessary to improve the efficiency of production management and material procurement.
According to company representatives, the Moscow office will continue to operate as a regional center responsible for supporting the retail network within Russia.
According to sources, between 100 and 120 employees are currently working at the new office in the UAE. Some employees were offered relocation to Dubai, but not everyone agreed to move.
Andrey Kosarev, a partner at the consulting firm Nikoliers, reported that the entire Gloria Jeans management team is already in Dubai. The formation of the new office began back in the summer of 2025, when the company started actively seeking staff to work in the UAE.
In January 2026, Gloria Jeans announced the closure of all its garment factories in Russia. The company’s owner attributed this move to a shortage of skilled workers, a lack of modern technology, and the economic unprofitability of production.
Recently, the company has already sold seven production sites in the Rostov and Volgograd regions, as well as in Kabardino-Balkaria, receiving nearly 400 million rubles for the assets.
Some of the enterprises were acquired by Bulava LLC, which is part of the Kalashnikov Group. The new owners plan to use the production facilities to manufacture military and specialized clothing.
In late March, Gloria Jeans also shut down its last two factories in the Rostov region and appealed to the Russian Ministry of Industry and Trade for help in finding buyers for these assets.
In parallel with the winding down of production, the company is carrying out a large-scale optimization of its retail network.
Over the past two years, Gloria Jeans has closed at least 100 stores, and in 2026, it plans to shut down another 150 retail locations.
By the end of 2025, the combined revenue of the company’s main legal entities had fallen by 7% to 80 billion rubles.
The decline in profitability was even more significant: net profit halved, amounting to just 950 million rubles.
Experts attribute the company’s problems primarily to declining foot traffic at shopping centers and changes in the retail market.
Analysts believe that moving the headquarters to Dubai could be part of a strategy to enter international markets.
Dmitry Tokarev, managing partner at Retaility, noted that after discontinuing its own production, it will be much easier for the company to coordinate the work of contract manufacturers from the UAE.
In turn, Andriy Kosarev emphasized:
“Having a headquarters in Dubai could simplify entry into foreign markets and the development of new brands targeting an international audience.”
Keywords: Gloria Jeans, Dubai, Russian clothing retailer, factory closures, Vladimir Melnikov, Gloria Jeans stores, manufacturing in Russia, UAE, international expansion, Russian business.
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