Oriflame shut down in Iran after staff arrests

Swedish cosmetics firm Oriflame's operations in Tehran have been closed down by the Iranian authorities, with three members of staff and two sales consultants taken into custody, the firm has confirmed in a press release, The Local reports.
One of the three arrested employees is reported to be Swedish and resident in Iran, according to CFO Gabriel Bennet.

The firm wrote in its press release that the staff and sales consultants have been arrested for "undisclosed reasons" and that Oriflame has not been given access to information "relating to the background to or effects of the current situation".

Iran represents some 20 percent of the group's sales in the Asia region. Despite the development in Iran, Oriflame confirms the outlook for 2010 in regard to sales, but has cut its profitability projection somewhat, from above 12 percent to around 12 percent.

In addition, a definite closure of the operations in Iran may lead to extraordinary costs in 2010 of approximately €10 million ($12.7 million).