After Renault and McDonald’s, among others, furniture store chain IKEA also announces that it will sell all its assets in Russia and close offices. The nearly 15,000-strong workforce is also being cut. This is the last step in the process of leaving Russia, according to IKEA. In March, the company closed all its stores in the country because of the war with Ukraine.
“Unfortunately, conditions have not improved and the devastating war continues. Businesses around the world have been badly affected,” said Ingka Group, the owner of all IKEA stores in Russia. The company says it sees no opportunity to resume sales in the country in the near future.
The Swedish furniture retailer is one of several Western companies that closed their doors in Russia after the country sent troops to Ukraine on February 24. Some concerns have sold their branches to local parties. For example, the Russian restaurants of McDonald’s were reopened on Sunday under a new name and with a new logo. Other companies have closed their stores for the time being.
IKEA opened its first branch in Russia in 2000 and now has 17 stores and 14 shopping centers there. The staff of the shops, which have been closed for almost three months, will continue to be paid until August. It is unclear what will happen to the four factories. IKEA says it will look for new owners and cut jobs, but gave no further details.
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