Mega is letting health food unit Eden Teva Market go. Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), Mega's parent company, has decided to file a petition for a stay of proceedings against Eden Teva, in view of the state of the natural foods chain.
Mega owns 51% of Eden Teva. The owners of Mega, recently considered including Eden Teva in creditors arrangement for Mega, but eventually decided not to do so.
"Globes" reported early this week that the shelves of Eden Teva were being emptied, and that the chain lacked merchandise. The situation has since worsened, with Eden Teva's sales falling precipitously.
An Alon Holdings Blue Square source said several days ago, "Eden Teva Market's situation in critical. We have to decide what to do with it, and quickly."
Eden Teva today published on its website an announcement that no new natural food orders could be made through its Internet store until further notice. As of now, the Mega website is still working as usual.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015