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IKEA

Ikea family feud erupts over flat-pack fortune

The founder of Swedish furniture giant Ikea and his three sons have become involved in a bitter dispute about the family's wealth, according to a new book about the company's future.

Ikea family feud erupts over flat-pack fortune

The book, ‘Ikea Moving to the Future’ (Ikea på väg mot framtiden), claims that Ikea founder Ingvar Kamprad and his sons are at loggerheads over a large portion of the family’s fortune, reported the Dagens Industri (DI) newspaper.

The three sons hired a star lawyer from the US to take on their 87-year-old father, who has a fortune of $3.2 billion, Forbes estimated in March.

The new book, which is has yet to be published, was penned by Lennart Dahlgren, the former head of Ikea in Russia, and researchers Stellan Björk and Karl von Schulzenheim.

The authors claim that the financial dispute can be traced back to 1982, when Kamprad registered Ikea in the Netherlands with the Dutch Stiching Ingka Foundation, but he kept the immaterial rights to the brand, which provided him a turnover-based compensation.

Kamprad’s move only afforded him a tiny fraction of the proceeds from the company, but over the next 30 years, the sum increased to 20-30 billion kronor ($3.14 billion to $4.71 billion), the authors reckoned.

Legally, the funds belonged to the sons according to the book, something that led to a long fight within the family, which ended up with Kamprad senior falling ill.

No members of the family have commented as yet.

TT/The Local/og

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IKEA

Ikea will buy back your used furniture at up to half the price

In the run-up to what would in normal times be the festive season sales rush, Ikea has vowed to buy back used furniture from customers to resell – and pay up to 50 percent of the original price.

Ikea will buy back your used furniture at up to half the price
Got any pieces of Ikea furniture at home? You may be able to get rid of it and get money back. Photo: Fredrik Sandberg/TT

Ikea, the world's largest furniture chain, said Tuesday it would begin buying back used furniture from customers to resell – and pay up to 50 percent of the original price.

The “Buy Back Friday” scheme, timed to coincide with the “Black Friday” pre-Christmas retail frenzy, will run from November 24th and until December 3rd in 27 countries.

“Rather than buy things you don't need this Black Friday, we want to help customers give their furniture a second life instead of making an impulse buy,” said Stefan Vanoverbeke, deputy retail operations manager at Ingka Group, Ikea's parent company.

To address concerns its affordable, flat-pack products encourage overconsumption and waste, the Swedish company had previously said it would start renting and recycling furniture as part of an eco-drive.

Under its buyback scheme, the group said that “anything that can't be resold will be recycled or donated to community projects to help those most affected by the Covid-19 pandemic”.

“Some countries like Australia and Canada for example are currently testing different buyback services, but BuyBack Friday will be the first time that 27 countries do this together,” the statement added.

The Swedish giant employs over 217,000 people and has more than 50 outlets. Its annual turnover is around 40 billion euros ($46 billion).

The group did not specify how it would determine the price paid for second-hand furniture and customers will receive a voucher, not cash, for their products.  

As part of efforts to reduce waste, Ikea has already begun repairing and re-packaging products in every store that have been damaged in transit, as well as allowing customers to return products – including furniture – for resale or donation to charities.

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