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Ikea Group Adds Romanian Unit After Franchisee Sells Business

Swedish IKEA group operates directly on the Romanian retail market after buying the operation and franchise rights of the store in the capital city Bucharest, Ikea Romania said in a statement.
Ikea Group Adds Romanian Unit After Franchisee Sells Business
12 mart. 2010, 16:22, English

The statement does not specify the value of the transaction.

Ikea franchise in Romania is operated by Moaro Trading owned by Engma Beheer, with a 75.7% stake, Turkmall Retail BV – 24.25% and Inter Ikea Systems BV – 0.05%, according to the National Trade Register Office.

Thus, as of March 8, 2010, Ikea Romania became part of the Ikea Group, after operating under franchise for three years, the statement said.

Earlier Friday, business newspaper Ziarul Financiar said, citing market sources, that local businessman Puiu Popoviciu has sold the IKEA operations in Romania to Swedish IKEA group for over EUR30 million.

Popoviciu brought the famous IKEA retail chain on the local market via a franchise in 2007, following EUR25 million investments.

Puiu Popoviciu, 49, also owns Howard Johnson, Ramada Plaza and Ramada Parc hotels as well as restaurant chain KFC.

With a single store in Romania, Ikea reported sales of 349.24 million lei (EUR1=RON4.0929) in 2009, down 9% on the year.

The Ikea Group owns 301 stores in 37 states, of which 268 are directly operated and the rest of 33 are franchises.