Zara owner Inditex plans to close its Venzuela stores as deal with Phoenix Worker Trade is being reevaluated. The closure is an effort on part of the company to expand its flagship stores. Inditex plans to close 1,200 stores by 2021-ends

Phoenix World Trade, a company based in Panama and controlled by Venezuelan businessman Camilo Ibrahim, took over operation of Inditex stores in the South American country in 2007. The company is re-evaluating the commercial presence of its franchise brands Zara, Bershka and Pull&Bear in Venezuela, to make it consistent with the new model of integration and digital transformation announced by Inditex.It has so far closed upto 700 stores in Europe as well as 100 in the Americas and 400 elsewhere in the world.

In at least three large Venezuelan malls, the spaces formerly occupied by Zara and Pull & Bear - another Inditex brand - are empty. The company also closed three stores in May.