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MIRA
INFORM REPORT
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Report Date : |
08.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
V F ISRAEL (APPAREL)
LTD. |
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Registered Office : |
P.O. Box 11770, 14 Ha'amal Street, Afek
Industrial Park, ROSH HA'AYIN 48092 |
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Country : |
Israel |
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Date of Incorporation : |
7.5.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and Marketers of Fashion Apparels
(mainly jeans, surfing and sportswear), Bags and Accessories. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 100,000. |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
V F ISRAEL (APPAREL) LTD.
Telephone 972 3 903
88 66
Fax 972 3
903 88 11
P.O. Box 11770
14 Ha'amal Street
Afek Industrial Park
ROSH HA'AYIN 48092 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company, incorporated as per file
No. 51-248074-0 on the 7.5.1997.
Subject was incorporated in order to handle local
marketing of the VF CORP. products in Israel, which were previously marketed by
the DELTA TEXTILE Group.
Originally registered under the name V F I LTD., which
changed to the present name on the 25.5.1997.
SHARE
CAPITAL
Authorized share capital NIS 32,700.00 divided into -
32,700 ordinary shares of NIS 1.00 each, of which shares amounting to NIS
1,000.00 were issued.
SHAREHOLDERS
Subject is fully owned by ADAD TRUSTEES COMPANY LTD.
We were unable to establish on whose behalf the above
trustee firm is holding the shares. Until couple of years ago subject was fully
owned by LEE BELL INC. of the U.S.A., a fully owned subsidiary of V F
CORPORATION, the US based fashion apparels giant whose shares are traded on the
New York Stock Exchange (symbol VFC).
DIRECTORS
1.
Alberto Calo,
2.
Neil Wright,
3.
Hans Dieter Jacobfuerborn, all foreign
residents, all appear to be of the V F CORP. Europe.
GENERAL
MANAGER
Doron Machlev.
BUSINESS
Importers and marketers of fashion apparels (mainly
jeans, surfing and sportswear), bags and accessories.
Sole local agents of V F CORP., of the U.S.A.,
marketing their brands in Israel, including JanSport, Kipling, Vans, Lee,
Wrangler, The North Face and others.
Sales are to fashion, stationary and pop stores
chains, e.g. RIKUSHET, LAMETAYEL, FACTORY 54 and many more.
Operating from rented premises (offices,
warehouse and store), on an area of 2,000 sq. meters, in 14 Ha'amal Street,
Afek Industrial Park, Rosh Ha'ayin.
Having 30 employees.
MEANS
Financial data not forthcoming.
There is 1 charge for an unlimited amount registered on the company’s
assets (financial assets), in favor of Bank Hapoalim Ltd.
ANNUAL
SALES
Sales figures not forthcoming.
BANKERS
Bank Hapoalim Ltd., Shaul Hamelech Branch (No.
532), Tel Aviv, account
No. 339789.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
Bank Leumi LeIsrael Ltd., Central Branch (No. 800), Tel Aviv.
CHARACTER
AND REPUTATION
In November 2005
NORTH STAR CAMPING EQUIPMENT LTD. filed the Kfar Sava Magistrate Court a NIS 2
million lawsuit against the international company THE NORTH FACE and subject as
their local agents, claiming a breach of an exclusive distribution agreement
subject had with the companies.
The plaintiffs
claimed that based on the agreement, it purchased goods in value of hundred
thousands GBP, invested money and dedicated extensive part of its activities to
promote the defendants' products. Therefore, they were surprised to find out that
V F would not extend the exclusivity to sell their products and transfer the
rights to V.F. ISRAEL (following the acquisition of THE NORTH FACE by the
international V.F. CORP.).
Furthermore, NORTH
STAR CAMPING added that due to the affair it estimates its losses in total of
NIS 15 million in sales and several more NIS millions in profits (the NIS 2
million filed was for fees consideration).
We have not heard
on this issue afterwards and assume it was resolved, and anyhow does not seem
to have effect on subject itself.
Apart from that, nothing unfavorable learned.
The “JanSport” brand for bags is most popular in
Israel, mainly in the youth bags (and school) categories.
V F CORPORATION, through its subsidiaries, is a global leader in branded
lifestyle apparel. Shares are traded on the New York Stock Exchange, market
value US$ 7.44 billion.
In October 2007 subject opened its first THE NORTH FACE store, on an area
of 180 sq. meters, in Hashmonaim Street, Tel Aviv. Reported investment
amounting to NIS 1.5 million.
Imported apparel
summed up in 2006 to US$ 990 million (4% increase from 2005), of which US$ 606
million were from China.
The Israeli
Chamber of Commerce notes that the Chinese production comprises over 20% of the
imported textile goods followed by France (14%), Italy (12%), Hong Kong and
Turkey (around 10% each), Spain (7%) and the U.S.A. (4%).
The increase in
imports emanates from the exposure to foreign markets policy by the State.
According to the
Central Bureau of Statistics, the current spending per capita in 2006 in
clothing and footwear rose by 5.8% comparing to 2005, as part of the general
trend in 2006 of higher current expenses for private consumption per capita (3%
increase). The general growth trend continued into 2007.
SUMMARY
Notwithstanding the refusal to disclose
financial data, considered good for trade engagements.
Maximum unsecured credit recommended US$ 100,000.
NOTE: Subject’s correct postal box number (#11770, not 251).
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.72 |
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UK Pound |
1 |
Rs.82.17 |
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Euro |
1 |
Rs.65.90 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)