IKEA's founder was a Nazi sympathiser — the 1994 revelation blindsided the brand

IKEA had been built into the world's largest furniture retailer on the image of its folksy, cost-conscious founder Ingvar Kamprad. By 1994, the chain operated stores across Europe and was expanding globally. Kamprad was the public face of the brand, appearing in videos and speeches about IKEA's values.

In 1994, the personal letters of Swedish fascist Per Engdahl were made public. The letters revealed that Kamprad had joined Engdahl's pro-fascist New Swedish Movement in 1942 at age 16 and remained active until at least September 1945. Kamprad called it 'the greatest mistake of my life' in a letter to IKEA employees, but the damage to the brand was done. The story was carried internationally, and IKEA — which had no brand crisis plan for such a revelation — scrambled to distance itself from its founder's past.

Kamprad devoted two chapters of his book Leading by Design to the controversy. The company continued to grow, but the episode permanently complicated IKEA's values-based branding. Kamprad, who died in 2018, was never fully rehabilitated in the public's mind, and IKEA's internal culture reviews in later years still referred back to the 1994 crisis as a turning point for the brand's transparency practices.