IKEA decides to liquidate Russian subsidiary
MOSCOW. Aug 16 (Interfax) - The holding company of IKEA, Ingka Holding Europe B.V., as the sole owner of Ikea Dom LLC, has decided to liquidate this company, which operates the Swedish furniture giant's stores in Russia, data from the SPARK-Interfax analytics system showed.
IKEA suspended sales at its stores and online in Russia on March 4, along with production at its factories in the country.
The Swedish company said in June that it will sell its four factories in Russia and warned that it did not see any possibility of resuming sales in the foreseeable future given the deterioration of the situation with business processes and supply chains throughout the world in recent months.
The company then held an online sale of goods from its stores, first for employees and then the general public. The sale ended on August 15. IKEA's stores will remain closed and will only give out processed orders and handle returns and exchanges, the company's website said.
The Mega shopping malls will continue to operate, the company said.
IKEA has 14 stores in Mega malls in Russia, as well as several IKEA City stores and design studios. The company's four factories in Russia are located in Yesipovo, Moscow Region; Tikhvin, Leningrad Region; and Veliky Novgorod and Krasnaya Polyana in Kirov Region.
Ikea Dom's revenue grew by 27.8% to 157.2 billion rubles in 2021.