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Sweden's Oriflame Cosmetics have been closed down in Teheran by Iranian authorities without disclosed reasons after business conditions have detonated in recent months, the company said Monday.
"The authorities have now closed Oriflame's operation in Teheran. The authorities have also detained three members of staff and two sales consultants without disclosed reasons. Oriflame has not at present access to detailed information relating to the background to or effects of the current situation", Oriflame said in a statement.
Chief Financial Officer Gabriel Bennet told AP that he believes Iranian authorities dislike Oriflame's business model of giving women the opportunity to work as direct sales consultants.
Iran represents 20 percent of the sales in the Asia region, with some 40,000 women selling its cosmetics. Last quarter the company sold for 5.5 million euro in Iran.
"We are working with the embassy to find out why this is, and to try to secure (our employees') release," he said, adding that one Swede and one other foreigner were among those arrested.
Iranian media meanwhile reported Monday that the closure and arrests were linked to suspected fraud in connection to a massive pyramid scheme.
According to hardline Iranian daily Kayhan, the Oriflame headquarters in Tehran had on Sunday morning been "searched and sealed" and "four top managers were arrested on accusations of 250,000 cases of fraud" linked to a 70-million-dollar (55-million-euro) pyramid scheme.
Oriflame's Bennet said he would not comment on these "rumours" further than to say any reference to a pyramid scheme was "ridiculous."
"We work the same way in Iran as in the rest of the world, in over 60 countries ... A pyramid firm could not run an internationally recognised business for more than 40 years," he said.
Oriflame Cosmetic was founded in 1967 in Sweden by the brothers Jonas af Jochnick and Robert af Jochnick. The company sells skin care, cosmetic products and other related products through an independent sales force of over 3 million people.
The firm posted net profit of 29.4 million euro in the second quarter, up from 22.6 million euro in the same period a year earlier. Sales rose to 375 million euro.
Shares in Oriflame were down more than 3 percent in Monday morning trading
Sweden's Oriflame Cosmetics have been closed down in Teheran by Iranian authorities without disclosed reasons after business conditions have detonated in recent months, the company said Monday.
"The authorities have now closed Oriflame's operation in Teheran. The authorities have also detained three members of staff and two sales consultants without disclosed reasons. Oriflame has not at present access to detailed information relating to the background to or effects of the current situation", Oriflame said in a statement.
Chief Financial Officer Gabriel Bennet told AP that he believes Iranian authorities dislike Oriflame's business model of giving women the opportunity to work as direct sales consultants.
Iran represents 20 percent of the sales in the Asia region, with some 40,000 women selling its cosmetics. Last quarter the company sold for 5.5 million euro in Iran.
"We are working with the embassy to find out why this is, and to try to secure (our employees') release," he said, adding that one Swede and one other foreigner were among those arrested.
Iranian media meanwhile reported Monday that the closure and arrests were linked to suspected fraud in connection to a massive pyramid scheme.
According to hardline Iranian daily Kayhan, the Oriflame headquarters in Tehran had on Sunday morning been "searched and sealed" and "four top managers were arrested on accusations of 250,000 cases of fraud" linked to a 70-million-dollar (55-million-euro) pyramid scheme.
Oriflame's Bennet said he would not comment on these "rumours" further than to say any reference to a pyramid scheme was "ridiculous."
"We work the same way in Iran as in the rest of the world, in over 60 countries ... A pyramid firm could not run an internationally recognised business for more than 40 years," he said.
Oriflame Cosmetic was founded in 1967 in Sweden by the brothers Jonas af Jochnick and Robert af Jochnick. The company sells skin care, cosmetic products and other related products through an independent sales force of over 3 million people.
The firm posted net profit of 29.4 million euro in the second quarter, up from 22.6 million euro in the same period a year earlier. Sales rose to 375 million euro.
Shares in Oriflame were down more than 3 percent in Monday morning trading
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