Background
After incurring significant losses for the previous five years, IKANO – the family investment fund of the Kamprad family, owners of IKEA – decided that nothing more could be served by their continued ownership of the Habitat retail business. Sales had been declining, losses had exceeded €100 million in the last three years alone and the brand had lost direction.
Despite the massive downturn in the performance of the business, it was clear from Hilco’s research that the Habitat brand retained a strong place in the minds of consumers throughout Europe. The period of ownership by IKANO was one in which the business had lost its way and had become structurally unsound.