The first two stores are slated to be opened in Istanbul, and the others will be opened within five years. Benjamin D. (Benny) Gaon and Yacov Gelbard's G. Retail Chains will have a 40% stake in the venture.
Hebrew daily "Yediot Ahronot" reports that Benjamin D. (Benny) Gaon and Yacov Gelbard have been granted a franchise to set up a chain of IKEA stores in Turkey. G. Retail Chains, jointly owned by Gaon Holdings and Gelbard, has just signed a contract with IKEA and a local partner, the Sabanji family, for the Turkish franchise. The franchise will be divided as follows: G. Retail Chains (40%), the Sabanji family (40%) and IKEA (20%). Benny Gaon confirmed the report.
The Sabanji family is reportedly one of the richest in Turkey, with a multi-billion dollar turnover.
Under the agreement, the partners in the franchise committed to spend $100 million in setting up six IKEA stores. The first two stores are slated to be opened in Istanbul, and the others will be opened within five years. The final agreement was signed last week in Salonica, where IKEA's international management attended the opening of an IKEA store.
Published by Israel's Business Arena on 8 November, 2001