Romanian IKEA Franchise was sold to Swedish group

Vineri, 12 martie 2010, 17:50 English | Business

IKEA Romania has become part of the Swedish group IKEA starting with March 8, after local franchise owners decided to sell its operating rights and the store's franchise in Bucharest, a company's communiqué shows. IKEA store from Bucharest, whose red tape was cut in Mach 2007, has been operated until recently through a franchise system by the Moaro Trading company, on the basis of an agreement with Inter IKEA Systems.

The company's representatives have not disclosed the value of the deal, but Ziarul Financiar informed on Friday, quoting sources from the industry, that Romanian businessman Puiu Popoviciu sold IKEA operations  to Swedish group IKEA in a transaction over 30 million Euros.

The first IKEA store in Romania, namely in Bucharest in Baneasa Commercial Zone, was opened on March 21, 2007, following an investment of nearly 25 million Euros. The store in Romania has been controlled through a franchise system by Moaro Trading company, after an agreement sealed with Inter IKEA Systems B.V., the owner of the IKEA concept and the only company in the world to grant franchise rights.

According to Commerce Register data, Moaro Trading shareholders are three firms: Engma Beheer (75.7%), Turkmall Retail BV (24.25%) and Inter Ikea Systems B.V (0.05%).

Te IKEA brand was registered in 1943 in Sweden. The capitals letters come from the founder's initials - Ingvar Kamprad, the name of the farm where he grew up - Elmtaryd, and the name of the state where he farm was - Agunnaryd.