MOSCOW, July 13 (Reuters) – Furniture chain Hoff has started signing contracts with IKEA suppliers in Russia, Chief Executive Maxim Grishakov told the Vedomosti daily, as the Swedish company winds down the operation of its stores in Russia and prepares to sell production sites.
IKEA said last month it would sell factories, close offices and reduce its 15,000-strong workforce in the country as it did not expect to resume sales in the foreseeable future.
It said it was “exploring various options” concerning the future of its 17 stores.
The company is conducting an online fire sale that it expects to last a few weeks. IKEA’s Russian website has experienced high traffic volumes. Shoppers hoping to make purchases on Wednesday were warned that delivery and pick-up slots were fully booked for the foreseeable future in Moscow and slot777 St Petersburg.
In an interview with Vedomosti published late on Tuesday, Grishakov said Hoff was ready to support Russian suppliers who used to work with IKEA, but had now lost their main customer.
“We are in constructive dialog with many of them, we have already signed contracts with some of them and will soon begin deliveries,” Grishakov was quoted as saying.
The RIA news agency had cited Grishakov in June as saying that Hoff was considering buying IKEA’s factories and renting some of its retail space, but he told Vedomosti that Hoff was keeping its options open and currently had no concrete plans to buy IKEA’s assets.
“We are not IKEA and we don’t want to buy IKEA,” Grishakov was quoted as saying.
“Even if all its retail space was available to rent tomorrow, I highly doubt that we would go and close agreements.”
Grishakov said no one had come to Hoff with an offer to buy the production sites and that his company had not yet approached IKEA.
“I think that in a few weeks there will be some sort of discussion one way or another and then we will decide,” he said, explaining that Hoff would need to understand how any deal may complement its existing business.
“Much will depend on who IKEA itself wants to sell to.”
IKEA said the formal sales process had started, but shared no further details. (Reporting by Reuters; editing by Jonathan Oatis)
