Ronen Levy conditions Office Depot buy on state aid

Levy said that if he does not receive a formal guarantee of government assistance, he will cancel his purchase of the chain.

Ronen Levy, owner of Retail Group 3000, which committed to reopen Office Depot Israel, is threatening to cancel the acquisition deal if he does not receive government assistance.

Sources inform “Globes” that Levy told Minister of Finance Yair Lapid that if he does not receive a formal guarantee of government assistance, he will inform the Knesset Economic Affairs Committee that he is cancelling his purchase of the chain.

Levy told the Finance Minister that he cannot bear the burden alone, and said that trying to do so would turn him from “a businessman into an impoverished man.” In his message, he further claimed that all the assistance he received to date amounted to “a waste of time and futile meetings.”

The sale of Office Depot Israel by Avi Malka to Retail Group 3000 was approved a few days ago, and Retail Group 3000 promised to reopen the chain and to reemploy an estimated 600 employees.

Levy demanded from the Finance Ministry that the government guarantee the loans he takes, and also that the National Insurance Institute pay the workers’ first-month’s salary.

A few days ago, Levy told “Globes” that Lapid promised to help, and that the Finance Minister’s Bureau had even approached Bank Hapoalim (TASE: POLI) CEO Zion Kenan to ask that they help Levy, who asked for credit from Bank Hapoalim without guarantors and without securities.

Levy was not available for further comment.

Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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