Ikea and its two top executives in France have been placed under formal investigation by prosecutors examining spying allegations against the world’s largest furniture retailer.
The company confirmed that Stefan Vanoverbeke, chief executive in France, and Dariusz Rychert, the chief financial officer, were being questioned by police in connection with allegations of spying on staff and customers. Ikea France is also part of the investigation.
The formal investigation also includes Jean-Louis Baillot, a former Ikea chief executive in France, the company confirmed.
French prosecutors were not immediately available for comment, but a statement by Ikea France said it continued “to provide all assistance to help establish the facts in the context of the ongoing judicial investigation”.
The formal investigation, opened on Tuesday, is the latest twist in a saga that started in March last year when police in Versailles, close to the headquarters of Ikea in France at Yvelines, raided the store’s main office.
The officials seized documents and checked computers after opening a preliminary judicial inquiry into the allegations of illegal surveillance brought by members of two trade union groups.
At the time, the company responded by launching its own internal investigation, which Ikea yesterday said had found that “some behaviour in France was not consistent” with its own rules and culture.
Four employees left the company as a result of that investigation, which concluded last year.
Ikea says it has introduced a stringent and worldwide code of practice since then, in particular in France, to ensure that such episodes do not happen again.
Nonetheless, the opening of a formal investigation in France this week is a further embarrassment for the Swedish retailer as it faces questions about its ability to keep its strong culture amid a big planned expansion globally.
Ikea has already suffered the fallout from a corruption inquiry in Russia that led to soul-searching among executives at the privately-held company.
Peter Agnefjäll, Ikea’s new chief executive, has said he will continue his predecessor’s attempts to open up Ikea, including publishing profit figures for the first time.
In an interview in August he said that ensuring the continuation of Ikea’s thrifty and ethical culture – based in its roots in rural southern Sweden – would be one of his biggest challenges as he seeks to double the retailer’s revenues by 2020.
The French allegations are particularly damaging as they come in one of Ikea’s biggest western European operations, with the retailer operating nearly 30 stores in the country, with 9,300 employees.
– (Copyright The Financial Times Limited 2013)
