Histadrut chief: Sue Mega's appalling owners

Avi Nissenkorn, Histadrut chairman
Avi Nissenkorn, Histadrut chairman

Avi Nissenkorn demands Shraga Biran, David Wiessman and the kibbutzim pay back the NIS 1.3 billion dividends they took from Mega and its parent company.

Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn has called for the owners of bankrupt supermarket chain - Shraga Biran, David Wiessman and the kibbutzim - to be prosecuted for bringing about the collapse of the company. He has also demanded that they return the dividends they have received from the company over the years.

Briefing journalists today, Nissenkorn analyzed the mistakes that brought about the collapse of Mega, spoke about the position of employees in the process, and how it is possible in his opinion to save the company.

He said, "The owners are appalling. There has been irresponsible conduct by the owners. In effect they lost faith in Mega. The only one interested in Mega was the chairman Avigdor Kaplan who tried to save it. The owners were outside of the loop throughout and not at all interested and didn't even come to the court. I hope that there will eventually be a derivative suit that will require them to return millions. They took out NIS 1.3 billion worth of dividends from Mega and its parent company. They (the owners) seemly emptied it out, simply emptied it in a scandalous way. They took all the real estate and transferred it to the parent company. They leased the real estate to Mega at outrageous rents that weren't the market price without leaving it any of the fat and no money."

Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Avi Nissenkorn, Histadrut chairman
Avi Nissenkorn, Histadrut chairman
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