Suits maker Bagir Germany files for bankruptcy

Bagir Germany's cash flow is insufficient to meet its debts to creditors.

BGI Investments (1961) Ltd. (TASE: BGI) today notified the TASE that the German unit of its suits manufacturer subsidiary, Bagir, has filed for bankruptcy. Last week, a German court approved the opening of insolvency proceedings against Bagir Germany Holding GmbH, as the company's cash flow is insufficient to meet its debts to creditors.

Bagir Germany had $20.1 million in sales in the first half of 2011, almost a third of Bagir's total revenue of $68.5 million. Bagir Germany posted a loss of $1.1 million in the first half.

Bagir said that it reviewing the consequences of Bagir Germany's insolvency on the company, and that BGI will report a material loss and cash-flow reduction and in its financial report for the third and fourth quarters of the year.

BGI's share price was unchanged in morning trading at NIS1.39, giving a market cap of NIS 73 million.

Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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