On 18 August 2005, the extra Shareholders’ meeting of the ZAO Pervomayskaya Zarya passed a resolution on the de-merger and establishment of a new company dealing solely with the fashion business.. Thus, on 12 December 2005 there was an opening Shareholders Meeting of the OAO Melon Fashion Group that was to approve of the Charter of the Company and elect its governing bodies. The new company was registered with state authorities on 27 December 2005.
During 2006 the Company was undergoing restructuring. In June production was totally moved to the Silhouette factory in Ostrov, which obtained the statute of an independent legal entity and became the Company’s subsidiary named Pervomayskaya Zarya-Ostrov. In August Pervomayskaya Zarya Production, a former subsidiary, became a separate company, whose management bought it out from MFG.
In September 2006 the two brand subsidiaries – OAO ZARINA and OOO Kurt Kellermann St Petersburg - were turned into closed companies: ZAO ZARINA and ZAO Kurt Kellermann St Petersburg.
On 10 January 2007, the reorganization was completed by merging these two subsidiaries and the parent company under the name of the latter – Melon Fashion Group, thus resulting in creation of one big fashion company with its own production.
192 stores were operated by the OAO Melon fashion Group as of December 31, 2008: 135 stores operated by the Company's retail department, 57 franchise store.