One week after the Court ordered a stay of proceedings against organic food chain Eden Teva Market, Tiv Taam Holdings 1 Ltd. (TASE:TTAM) has submitted a bid to acquire the chain's business. The bid includes only Eden Teva Market's business, without its debts and obligations, although Tiv Taam is expressing willingness to employee at least some of the chain's employees.
The Mega retail chain controlled Eden Teva Market with a 51% share, while founder Guy Provisor owns 49% through a company under his control. Provisor lost his position as CEO of Eden Teva Market following a dispute with Mega about his refusal to dilute his holdings in exchange for an injection of money by Mega and its parent company, Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI).
Eden Teva Market owes Mega NIS 101 million in owners' loans, and Mega has guaranteed an additional debt of NIS 50 million, including NIS 35 million to Bank Leumi (TASE: LUMI).
Eden Teva Market has nine independent branches and 14 more store-within-a-store branches, consisting of areas for selling organic food within Mega branches. Tiv Taam is not offering to buy the activity of these areas.
Eden Teva Market's revenue totaled NIS 405 million in 2014. The company's 2014 operating loss was NIS 14.9 million, and its net loss was NIS 54.7 million. Eden Teva Market had a NIS 5 million operating loss and a NIS 9 million net loss in the first quarter of 2015.
The organic chain has 640 employees employed directly and 20 more contract workers under the chain's agreements with third parties.
Tiv Taam CEO Adi Cohen said, "We plan to operate the chain under the Eden Teva Market brand name, and believe that it is possible to upgrade the brand. The niche itself is interesting and growing."
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2015
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