Well-informed sources at IKEA Israel deny the security situation is behind the sale.
Hebrew daily “Yediot Ahronot” reports that IKEA has quit its partnership in IKEA Israel. IKEA sold its 25% stake in Blue Square Furniture, which owns the IKEA franchise in Israel. The Co-Op Blue Square Consumer Cooperative Society (Co-op) confirmed the report. Sources said that Jewish-Canadian businessman Albert Gnat bought IKEA's stake. Gnat has been IKEA's representative on Blue Square Furniture and IKEA Israel's boards of directors.
IKEA Israel’s franchise will be put up for sale soon, as part of the sale of Co-Op's assets. Even after the sale IKEA will have the right to decide IKEA Israel's next owners. Former Co-op chairman Benjamin D. (Benny) Gaon, who initiated Blue Square Furniture's IKEA franchise, urged IKEA to be a partner in the Israeli store, as a way of cementing its commitment.
Well-informed sources at IKEA Israel denied that the security situation or IKEA's desire to end its direct investment in Israel were behind the sale. The sources claimed that IKEA's global policy is to award a local franchise, while remaining only a supplier, not an owner. The sources said the original partnership agreement gave IKEA the option to sell its stake at any time, without the need for its partners' consent.
Published by Globes [online] - www.globes.co.il - on June 26, 2002