Russian furniture chains eye IKEA’s shuttered factories, stores
2022.06.17 13:31
FILE PHOTO: Customers walk in IKEA store, in Moscow, Russia, March 3, 2022. REUTERS/Staff/File Photo
(Reuters) – Russian furniture chain Tvoi Dom and another brand Hoff are both considering buying IKEA’s Russian assets after the Swedish firm put its factories up for sale, Russian news agencies reported.
IKEA closed its stores in Russia in March after Moscow sent troops into Ukraine, prompting the West to impose sanctions.
The Swedish company, the world’s biggest furniture brand, said on Wednesday it aimed to sell its factories, would reduce its 15,000-strong workforce and was “exploring various options” concerning the future of its 17 shuttered stores.
“Management is ready to consider commercial proposals for the acquisition of IKEA’s assets – retail and production sites,” Tvoi Dom spokesperson Amina Tagieva said, according to Tass news agency on Friday. Other news agencies carried similar comments.
Tvoi Dom, which means “your house” in Russian, did not disclose details.
Russian furniture chain HOFF was also considering buying IKEA’s plants and renting some of its retail space, HOFF Chief Executive Maxim Grishakov told RIA Novosti agency on Thursday.
Hundreds of Western companies have left Russia in the past four months. Companies such as McDonald’s (NYSE:MCD), Renault (EPA:RENA) and Enel (BIT:ENEI) have written down hundreds of millions of dollars in losses as they sell assets at cut prices.
