Honigman, one of Israel's best known and largest retail fashion chains, has filed for court protection from its creditors by asking for a stay-of-proceedings. The company owes creditors NIS 234 million.
Just 10 days ago, the chain's owners Yaakov and Micha Honigman announced that CEO Kobi Moiseh was leaving his post to be replaced by former CEO Micha Ronen who left two years ago to become CEO of Schultz.
Market sources believe that the collapse is not only due to changes in Israel's retail fashion market in recent months and the move to online purchases but also because Honigman has become a "non-innovative and unfashionable shopping experience."
Founded in 1978 by the Honigman brothers, the chain manages three brands - Honigman Women, TNT, and Honigman Kids with 150 branches throughout Israel and over 1,000 employees.
Israel's fashion retail industry is undergoing a crisis. In November, Celio received a stay-of-proceedings and over the past few days several smaller chains - Yafo-Tel Aviv and Mish-Mish have asked for court protection against creditors.
Last week Castro CEO Gabriel Rotter said that his chain was in a war of survival with low demand.
Honigman said, "Honigman Group is a long-established and leading fashion chain in Israel's fashion market, which has gained many loyal customers over the years who are a source of pride for over 70 years. The main issue on the agenda is the company's continued operations together with its loyal staff in a way that will allow the company to set off on a new path."
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018