Zara and Zara Home will continue to operate in these two South American countries through a franchise contract, which will be overseen by Regency Group. The collaboration between Regency and Inditex spans 25 years, and Regency already manages all of Inditex’s brands in the region, including Colombia, Peru, Panama, Ecuador, and Paraguay, as confirmed by the textile giant in a press release.Regency, a Panamanian company with a presence in 13 Latin American countries, over 5,000 employees, and more than 400 stores in the region, will absorb Inditex’s entire workforce in Argentina and Uruguay, which exceeds 1,000 employees.

The agreement between Inditex and Regency will take effect in a few months, subject to the finalization of formal and administrative matters, according to sources close to the operation.Inditex emphasized that its commercial teams will remain closely linked to the activity of its brands in Argentina and Uruguay, just as it is in all countries in the region where similar agreements are in place.The objective of the agreement with Regency is to standardize the management model of its brands implemented in most of its regional markets.Currently, Zara and Zara Home have 11 stores in Argentina and four in Uruguay. Upon completion of the operation, both brands will continue to offer their fashion collections in both countries.