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MIRA INFORM REPORT
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Report Date : |
17.08.2011 |
IDENTIFICATION DETAILS
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Name : |
MATIM LI STORES (1997) LTD. |
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Registered Office : |
9 Arie Regev Street, Industrial Zone, Ramat Poleg, Netanya 42504 |
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Country : |
Israel |
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Date of Incorporation : |
17.02.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, Manufacturers, Marketers and retailers of fashion wear and apparel for women and men. |
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$ 800,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company
name & address
MATIM LI STORES (1997) LTD.
(Known also as "ML")
Telephone 972 9 864 00 00
Fax 972 9 885 87 90
9 Arie Regev Street
Industrial Zone, Ramat Poleg
NETANYA 42504-ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-245072-7 on the 17.02.1997.
Subject was
founded in view of assuming all activities of AVI MALKA MANAGEMENT & ASETS
LTD., which was originally founded in 1991 as a non-registered business by Avi
Malka and converted into a private limited company at the end of 1995.
In May 2005, the
following 3 companies were merged into subject:
1.
KARIN LARGE SIZES FAHSION LTD.,
2.
F.O.B. INTERNATIONAL GROUP LTD.,
3.
MATIMLI – ADVERTIZING & MARKETING (1998) LTD.
SHARE CAPITAL
Authorized share capital NIS 32,700.00, divided into -
32,700 ordinary shares of NIS
1.00 each,
of which 100 shares
amounting to NIS 100.00 were issued.
SHAREHOLDERS
Subject is fully owned by MALKA RETAIL GROUP LTD., owned by Avraham (Avi) Malka.
SOLE DIRECTOR
Avi Malka,
Chairman.
GENERAL MANAGER
Guy Gana.
BUSINESS
Importers, manufacturers,
marketers and retailers of fashion wear and apparel for women and men.
Goods are sold in
subject's retail chain stores, which carry the main logo "ml",
designed for women, as well as "ml-men" for men, "mam'z"
for young and "For2" for maternity fashion. Subject also specializes
on women large-size clothing (in the past it used to be subject's main line,
however today subject sells all kinds of collection).
ML chain has over
90 retail fashion stores (women mostly, men and mixed) countrywide, typically
situated in the main shopping malls. Stores are partly owned by Avi Malka and
partly by concessionaires. In addition operating some 8 stores of
"Mam'z" and “For2”, and some 50 “Jump” stores.
Advertising
agency: FOGEL OGILVY.
Operating from ML
Group headquarters, 3 storey building (1,400 sq. meters built, rented), in 9
Arieh Regev Street, Industrial Zone, Ramat Poleg, Netanya and from stores
countrywide. Group also operates a textile plant (owned) on an area of 6,000
sq. meters in Barkan.
Having 270
employees in subject.
Having several
hundreds of employees in the ML Group (over 500).
MEANS
Current stock is
valued at NIS 22,000,000
Reported 2008
advertising budget was US$ 2.7 million, and 2009 advertising budget was US$ 1.6
million.
Other financial
data not forthcoming.
There are 29 charges for unlimited amounts registered on the company's
assets, favor of Bank Leumi Le'Israel Ltd., Mercantile Discount Bank Ltd., Israel Discount Bank
Ltd., Mizrahi Tefahot Bank Ltd. and companies (last charge placed March 2011).
REVENUES
· Subject's 2010 sales claimed to be NIS 120,000,000.
· Subject's 2011 first 6 months sales claimed to be NIS 60,000,000.
· ML Group consolidated sales believed to be exceeding NIS 200 million.
OTHER COMPANIES
· MALKA RETAIL GROUP LTD., parent holding company, also holds:
·
AVI MALKA MANAGEMENT & ASSETS LTD., a holding
company, owned by Avi Malka,
·
MAM'Z FASHION LTD., operating young ladies retail
fashion chain called “mam’z”.
·
JUMP FASHION LTD., operating the “Jump” fashion
retail chain (see CHARACTER below).
BANKERS
·
Bank Leumi Le’Israel Ltd., Netanya Business
Branch (No. 717), Netanya.
·
Mercantile
Discount Bank Ltd., Netanya Branch (No. 647), Netanya.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject is
considered among the top leading fashion chain store in Israel, with remarkable
rate of growth in recent years.
Subject began to
operate abroad in 2003 and by the end of 2004 operated via 14 stores, with investment
of NIS 10 million. Subject's move, considered as a strategic move, did not
prove to be a successful one. In September 2006, it was reported that Avi Malka
is negotiating the sale of 49% of subject's foreign activities (14 stores), in
consideration of US$ 1.5 million.
In May 2010 it
was reported that subject ceased operating abroad, after decided to focus its
activities locally. According to a report from March 2011, subject had a loss
of NIS 10 million in abroad activities.
In mid 2006
subject launched a new men's chain, branded "ml-men", aimed at men in
ages over 30, with an investment of NIS 15 million. Avi Malka estimated the
men's chain to reach turnover of NIS 45 million in its first year.
Further NIS 7
million were invested in re-branding the women's line.
In January 2007,
subject acquired the young fashion chain store "mam'z", with
estimated annual turnover of NIS 8-10 million. It was reported that subject
intends to develop the chain, open over 10 more stores (with investment of NIS
1.5 million) and reach sales of NIS 40 million by the end of 2008. Also plans
to move the manufacturing line to China.
In October 2007, it was reported that subject's parent, MALKA RETAIL
GROUP, acquired 50% of the on-line shopping portal OLSALE,
for NIS 21 million (transaction volume estimated at NIS 150 million per year).
In August 2008 it was reported that MALKA RETAIL sold it holding in
OLSALE since it decided to concentrate in the fashion sector.
In August 2009 MALKA RETAIL
GROUP won the bid to acquire JUMP FASHION LTD., which
stumbled upon grave financial difficulties and went into freezing procedures,
from the HAMASHBIR LAZARCHAN HAHADASH LTD. and Menachem Kufitz for estimated
sum of NIS 27 million including inventory). JUMP was operated by a Trustee who
published the tender for the fashion chain, after previous acquisition
attempts, including twice by ML Group during 2008/9 failed. ML started to
operate the JUMP Chain, though only by October 2009 the Court approved the
transaction. JUMP operates in two lines of activities:
1. Wholesale: designers,
manufacturers, importers, exporters and marketers of women’s fashion, mainly
under brand "Jump". Manufacturing is in Rishon Le-Zion. It had over
200 employees in 2009.
2. Retail: operating a retail chain fashion
stores nationwide (had 55 stores, of which 33 owned and the rest are operated
by concessionaires), under the name "Jump ". Targeting women
above age
The line of JUMP’s subsidiary IRIT LINE LTD. was not part of the deal.
Since the
acquisition, the ML Group ran a streamlining plan, merging administration of
JUMP and ML chains to save costs.
In March 2009 it
was reported that subject is entering the beachwear fashion and accessories
field and is opening specialized departments in the Group’s shops. Investment
in promotion said to be around NIS 500,000.
In October 2009
it was reported that the ML Group is intending to go through a re-organization,
in which the women's and men's stores will unite, investing NIS 6 million in
the move.
In April 2009 it
was reported that subject is opening 3 new shops in Jerusalem and in two
shopping malls in the country’s north, with total investment of NIS 1.5
million.
In May 2009 it
was reported that "mam'z" is intending to open it flag store in Kfar
Saba with an investment of NIS 300,000. Further 3 branches are planned to be
opened in 2010.
In January 2010
it was reported that subject intends to open 6 more branches, with an
investment of NIS 1.5 million.
In March 2010 it
was reported that MALKA RETAIL GROUP intends to invest NIS 13 million in
re-branding “Jump” stores brand. In parallel, subject is investing NIS 8
million in re-branding and advertising campaign for the “ml” brand.
Avi Malka was
quoted in May 2010 to say they expect to reach a turnover of NIS 100 million
with “Jump” sub-chain till 2010 end, as they managed to increase the chain’s
sales since its acquisition in 2009.
In May 2010 it
was reported that subject intends to open 4 concept branches (men+women), with
an investment of over NIS 2 million.
In August 2010 it
was reported that Group acquired a textile plant in Barkan to serve Group's
activities, and transferred the activities of JUMP's plant in Rishon Le-Zion to
it.
In January 2011 it
was reported that subject will invest NIS 3 million in an advertising campaign.
In February 2011
it was reported that subject will unite the women's and men's stores to save
costs.
In August 2011 it
was reported that subject is launching a new brand for women in their 20's
under the name 'mlLY' (Emily) investing NIS 3.5 million.
The
local textile and fashion market is valued at NIS 7.5 billion per annum, NIS 6
billion of which is attributed to the fashion branch.
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.
Import of Clothing and Footwear in 2010 summed up to US$ 1,437 million,
comparing to US$ 1,267 million in 2009 (13.4% increase, as the local market
experienced a slow-down) and US$ 1,402 million in 2008. Most import comes from
China. Main
other countries of origin for textile goods are France, Italy, Hong Kong and
Turkey, Spain and the U.S.A.
The local fashion market was suffering from
slow-down during 2009, and the trend continued into 2010, although in a less
extent. According to a local retail research company, retail
fashion chains witnessed in
In addition new international fashion players
(GAP, H&M) entered in 2009/2010 to the local fashion market, which has been
highly competitive already.
On top of that, fashion retailers suffered
from the late and short winter, adversely hitting 2011 winter collection –
which negatively contributed to the trend in the sector.
Sales by local Textile and Fashion Industries experienced
decrease in sales over the last couple of years. The output by the local Textile and Clothing
industries in 2009 fell down by 13% from 2008. Some
60% of the textile industry production is sold in the local market and the rest
for export. Most exports were the North American markets (some 50%), and the
industries suffered from the global economic crisis, mainly in the USA, as well
as the slow-down in local market.
In 2010 sales for
export of the Textile, Clothing & Leather industries improved just
slightly, with 3.5% increase from 2009, reaching US$ 916.1 million.
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.
The number employed in the Textile Industry keeps falling: some 1,600 workers
were dismissals during 2008, and in 2009 over 1,900 employees are expected to
be laid-off. There are around 14,000 employed in the textile sector in some 130
plants.
According
to the Central Bureau of Statistics (CBS), the current expenditure for private
consumption in 2010 for clothing, footwear and personal items fell by 5.1% from
2009, continuing the decreasing trend in 2009, though in an higher magnitude
(in 2009 it fell marginally (0.7%) from 2008, after rising 4.1% from 2007).
This happened in contrast to the general trend in the local market in 2010,
where expenditure level for private consumption actually increased.
According
to surveys, average spending per houshold on clothing & footwear in 2008
reached NIS 483 per month and fell to around NIS 455 per month in 2009 (similar
level as 2007).
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended US$ 800,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.25 |
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UK Pound |
1 |
Rs.73.88 |
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Euro |
1 |
Rs.65.06 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.