The IKEA Israel store in Netanya was destroyed by a fire on Saturday. The store and its contents are a total loss. As the store is closed on Saturdays, no people were inside, and there were no casualties in the blaze.
The fire broke out at about 5:45 am Saturday, and Fire and Rescue Services were called to the site at 7 am, but could not stem the fire. The fire was spotted at the IKEA control room, which raised the alarm.
The cause of the fire is not yet known, but it apparently started on the roof, which eventually collapsed. IKEA said that the store's fire alarm system was fully functional at the time.
IKEA Israel opened its first store at the Poleg Junction in Netanya in April 2001. It opened its second store at Me'uyan Soreq in Rishon LeZion in March 2010.
IKEA Israel chairman Ron Hadasi and CEO Shlomi Gabai said in a statement, "The IKEA store at Rishon LeZion will operate normally. Its staff will be reinforced by 50%, and will deliver all orders placed at the Netanya store."
IKEA Israel, owned by Matthew Bronfman, reported NIS 678 million in sales in 2010, 40% more than in 2009. Most of the increase was due to the opening of the Rishon LeZion store.
In a notice to the Tel Aviv Stock Exchange (TASE) today, British-Israel Investments Ltd. (TASE: BRTS), which owns 50% of the IKEA Israel properties through Iris Hagilboa Ltd., said that its share of the Netanya store was worth NIS 100 million. The properties have a lien on them in favor of a creditor bank. British Israel said that it has insurance on the property, the loss of revenue, and loss of rent. It is examining the repercussions of the fire with the insurance, bank, and tenant.
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2011
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