MIRA
INFORM REPORT
|
Report Date : |
22.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CRAZY
LINE LTD. |
|
|
|
|
Formerly Known as : |
CRAZY TEXTILE LTD. |
|
|
|
|
Registered Office : |
P.O. Box 292, Yavne (81102), 1 Poleg Street, Industrial
Zone, YAVNE 81223 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
2.10.1990 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturers and Marketers of Ladies Fashion
Wear and Accessories |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
CRAZY LINE LTD.
Telephone 972 8 932 50 05
Fax 972 8 932 50 18
P.O. Box 292, Yavne (81102)
1 Poleg Street
Industrial Zone
YAVNE 81223 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company registered as per file No. 51-150804-6 on the
2.10.1990, under the name CRAZY TEXTILE LTD., which changed to the present name
on the 19.11.1990.
Subject continues a sole proprietorship founded in 1986.
SHARE CAPITAL
Authorized share capital NIS 14,000.00, divided into -
14,000
ordinary shares of NIS 1.00 each, of which shares amounting to NIS 100.00 were
issued.
SHAREHOLDERS
1. Mrs. Rivka (Becky) Levin, 98%,
2. Ido Levin, 1%,
3. Eran Levin, 1%.
SOLE DIRECTOR
& GENERAL MANAGER
Giora Levin, husband of Rivka.
BUSINESS
Manufacturers and marketers of ladies fashion wear and
accessories.
Also operating a retail chain store, under the brand
name “Crazy Line”.
Stores are
typically situated in the main shopping malls around the country.
All imported goods are sold in subject's chain stores.
Most of manufacturing activities are in China, India,
Turkey and Portugal.
Among local suppliers: GROUPE CORWIK, PUSH, ONIYAH – DR.
W. RIESE AND SONS, CEHAG TRADE AGENCY, etc.
Advertising
agency: MCCAN ERICKSON.
Main landlord leasers (for the retail stores): BIG SHOPPING CENTERS, REIT
BRITISH ISRAEL, AZRIELI MALLS GROUP, GAZIT GLOBE.
Operating from premises in 1 Poleg Street, Industrial Zone, Yavne and from
60 stores nationwide.
Also operating stores abroad (Germany, Romania).
There are some 500 employees in the CRAZY LINE Group.
MEANS
Financial data not forthcoming.
There are 10 charges
for unlimited amounts registered on the company's assets (financial and fixed
assets), in favor of Bank Hapoalim Ltd., Bank Leumi Le’Israel Ltd., The First International Bank of Israel Ltd. and companies.
ANNUAL
SALES
2004 sales reported to be NIS 145,000,000.
2005 sales reported to be NIS 148,000,000.
2006 sales reported to be NIS 165,000,000 (reported beginning of 2007).
Consolidated 2007 sales (including subject)
reported to be over
NIS 200,000,000.
OTHER
COMPANIES
LUCCI LINE 2007 LIMITED PARTNERSHIP, 100%, fashion retail chain store,
including 26 shops spread countrywide under the brand "Lucci",
importers, marketers, selling young ladies fashion, apparel, footwear and
fashion accessories.
BANKERS
Bank
Leumi Le’Israel Ltd.
The First International Bank of Israel Ltd., branches
data not forthcoming.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject’s CFO refused to disclose any details,
besides line of business.
Subject,
a veteran family-owned and managed company, is considered among the leading
fashion chain store in Israel, with remarkable rate of growth in recent years. The chain is targeted at women of 35 years and up, however the Group, now
via the LUCCI sub-chain, also targeted the young ladies market.
In April 2004, it was reported that subject will
invest US$ 5 million in redesigning its stores.
In December 2004 subject opened a store in Germany,
with reported of investment of € 250,000. It was reported that subject decided
to open an owned store, after its attempt in a franchised store in Greece,
opened in the beginning of 2005, was a failure and was shut down.
In mid 2006, it was reported that subject plans
opening 4 new stores in Germany, with investment of € 400,000.
In 2005, it was reported that subject is entering the
fashion accessories area, with initial promotion investment of NIS 400,000.
The following was published during 2007 on subject,
among others:
Subject is entering into activities in Romania and
Hungary
In March 2007, subject invested NIS 1.5 million in
launching its spring-summer advertising campaign.
During the first quarter of 2007 subject acquired the
young trendy ladies fashion company LUCCI, with 15 stores. It was reported in
mid 2007 that in the re-positioning of the LUCCi Chain, some NIS 20 million was
invested.
The Group plans to reach a spread of some 40
stores by 2009.
In 2007 it was reported that subject is entering the
footwear field, introducing uniquely designed sandals and shoes for women.
Promotion investment for the move reported at NIS 500,000.
In March/ April 2008, it was reported that subject
invests US$ 2 million in launching its spring-summer collection.
According to the
Central Bureau of Statistics, the current spending for private consumption in 2007
for clothing, footwear and personal items rose by 11.3% comparing to 2006 (10%
increase in 2006 from 2005), as part of the general trend in 2007 of higher
current expenses for private consumption per capita (7% increase).
According to the Chairman of the Textile and
Fashion division of the Industrialists’ Association, the sales of the textile
industry in 2007 reached
US$ 2.4 billion (similar to 2006, which marked 6% rise comparing to 2005).
Total sales divided
into sales to the local market of US$ 1.4 billion and US$ 950 million for
export.
According to
surveys, around 50% and more is women's fashion. Moreover, 40% of fashion
stores in Israel belong to fashion chains, the rest being private shops.
In 2006, sales to
the local market rose 13% from 2005 to NIS 5.18 billion.
Imported apparel summed up in 2006 to US$
990 million (4% increase from 2005), of which US$ 606 million were from China.
The local industry
has been in state of crisis during last decade in face of amounting import from
foreign competitors with cheaper production costs, forcing streamlining
process, plants closure, and mostly resulting in the shift of textile
manufacturing to low labor cost countries. According to the Industrialists’
Association, 10 manufacturing firms ceased activities in recent couple of
years, while many plants moved most manufacturing activities abroad (15% moved
to China, 12% to the West Bank Palestinian Autority territories).
2007 marked the
first year in 12 years that new workers were recruited to the textile industry,
however there were also dismissals both during 2007 and beginning of 2008.
There are 18,300 total employed in the textile sector.
SUMMARY
Notwithstanding the refusal to disclose
data, subject is considered to be good for trade engagements.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.40 |
|
UK Pound |
1 |
Rs.83.15 |
|
Euro |
1 |
Rs.65.74 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)