Benny Gaon, who retains Arad Communications' services, has been negotiating with IKEA to transfer the company's Israeli franchise to Gaon Holdings.
IKEA Israel has cut its ties with PR firm Arad Communications, at the insistence of the Co-op acting board. IKEA Israel is jointly owned by Co-Op Blue Square Consumer Cooperative Society (Co-Op) (75%) and IKEA (25%). The board claims a conflict of interest has arisen because Arad Communications is handling the accounts of both Gaon Holdings and Benny Gaon. IKEA is negotiating with several PR firms in an attempt to find a new PR representative.
Gaon negotiated with IKEA to open a store in Israel, and set up the company's commercial foundation here. "Globes" earlier reported that Benny Gaon has been negotiating with IKEA to transfer the Israeli franchise to Gaon Holdings.
Arad Communications CEO Yuval Arad confirmed that the relationship with IKEA is over, and wished the company success.
Published by Israel's Business Arena on 2 July 2001