A motion for liquidation was filed with the Tel Aviv District Court on Wednesday against financially troubled Matim Li Ltd., the owner of the Jump and ML fashion chains by Onia Ltd., which provided the company with mail and printing services. Onia states that the banks have not honored checks by Matim Li, including a NIS 50,000 check to Onia, and that bailiff's proceedings had been initiated. Onia appended to its motion reports by BDI, which stated that Matim Li was in bad shape.
Matim Li said in response, "The supplier did not do its job, and the company stopped payment. The court will clarify the matter."
Matim Li is owned by Avi Malka. Its holdings include ML, Israel's largest chain for large sizes, and Jump, which was under a stay of proceedings. ML has 63 stores nationwide, and Jump has 38 stores.
Several Israeli fashion chains have gone out of business in recent years, the latest being Sigal Dekel, which sought a stay of proceedings last week, due to debts.
In February, Malka acquired Office Depot Israel Ltd. for NIS 43 million, but apparently owns it through a different company.
A top mall executive told "Globes" today, "It's not because of the rent at malls. Avi Malka made the mistake of his life when he bought Office Depot. He thought it would save him, but instead it has driven him to oblivion. He was in trouble before. Instead of concentrating on what he had - ML was in good shape - he went and acquired Jump. He thought if he was bigger, it would be easier. It didn’t work. Then he went and acquired Office Depot Israel, and again thought if he was bigger, it would be easier, and again, it didn’t work. In business, you should focus on what you know how to do."
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2013
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