IKEA founder Kamprad dies at 91 - SHINE

IKEA founder Kamprad dies at 91

AFP
IKEA founder Ingvar Kamprad has died aged 91, the company said yesterday, leaving behind a global business empire built on revolutionary flat-pack furniture.
AFP
Reuters

Tove Laxvik, an IKEA employee, signs a book of condolences at the entrance of an IKEA store in Stockholm yesterday. Ikea founder Ingvar Kamprad has died aged 91 yesterday “following a brief illness” at his home. 

IKEA founder Ingvar Kamprad has died aged 91, the company said yesterday, leaving behind a global business empire built on revolutionary flat-pack furniture but under investigation over its tax practises in the Netherlands.

The company said in a statement that Kamprad “passed away peacefully surrounded by his loved ones” at his home in the southern Swedish region of Smaland on Saturday “following a brief illness.”

“Ingvar Kamprad was a unique entrepeneur who has meant a lot for Swedish business and who has made home furnishing available for many people, not just the few,” Swedish Prime Minister Stefan Lofven told TT news agency.

Born in 1926 to a farming family in Smaland, Kamprad, whose 2017 fortune was estimated at 37.3 billion euros (US$46 billion) according to the Swiss economic magazine Bilan, founded the company at the age of 17.

Despite his enormous success and wealth, Kamprad’s modest spending habits bordered on the obsessive.

In 1973 he fled Sweden’s higher tax structure for Denmark before seeking even lower taxes in Switzerland.

Starting in 2010 Kamprad gradually made way at the helm of the company for his three sons, finally returning to live in Sweden in 2014.

Kamprad announced in 2013 that he would be stepping down from the board of Inter IKEA, owner of the furniture giant’s concept and brand, and his youngest son became chairman.

Last year, the European Commission announced that it had launched an investigation into IKEA’s tax deals in the Netherlands.

The Consortium of Investigative Journalists in 2014 cited leaked tax files from Luxembourg when it identified IKEA as one of the giant multinationals fingered for corporate tax avoidance by shuffling money to tax havens.

The group insists that it complies fully with national and international tax regulations.

Kamprad has faced harsh criticism in the past for his ties to the Nazi youth movement during World War II.

Sweden was neutral in World War II, and its Nazi party remained active after 1945. The IKEA founder said he stopped attending its meetings in 1948.

He later described the period as the “folly of youth” and “the greatest mistake of my life.”

The story of IKEA — acronym for Ingvar Kamprad, Elmtaryd and Agunnaryd (the name of his farm and municipality of origin) — began in 1943.

Backed with modest financial support from his father, Kamprad began selling pens, picture frames, typewriters and other goods, delivering orders on his bicycle. His early success arose from squeezing his prices to undercut more established competitors.

In 1947 the young Kamprad started selling furniture made by local artisans, and four years later began publishing the first of his mail order catalogs — now printed in 200 million copies and 33 languages annually.

IKEA’s revolutionary self-assembly model — which would cut transport and storage costs — was conceived in 1956 after an employee suggested table legs be removed during freight so the package would fit into a car.

Two years later Kamprad opened IKEA’s first store in Almhult, south of his hometown.

He was proud of the egalitarian spirit that his company promoted, telling Sydsvenskan newspaper in 2008, “I belong to the people on the (shop) floor.”

“The greatest intelligence within IKEA is on our floors. If I want to know something I don’t approach a top manager, I talk to 10 sales people,” he added.

From 1970, IKEA conquered major markets in Europe, North America, Asia and the Middle East, thriving on the spending power of the emerging middle class.


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