MIRA INFORM REPORT
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Report Date : |
16.02.2011 |
IDENTIFICATION DETAILS
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Name : |
EXPOSE FASHION LTD. |
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Formerly Known As : |
K. EXPOSE ISRAEL 2005 LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
05.09.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and
marketers of ladies and kids swimwear and undergarments |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
Unknown |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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
EXPOSE FASHION LTD.
Telephone 972 4 623 06 86
Fax 972 4 623 06 88
Northern Industrial Park
HISTORY & LEGAL FORMATION
A private limited company registered as per file No. 51-372919-4 on the
05.09.2005 under the name K. EXPOSE ISRAEL 2005 LTD., which changed to the
present name on the 11.09.2005.
Subject was established as part of cooperation between the present
shareholders, based on the activities (of swimwear) of CORAL MODEL LTD.,
established by Amir Haberfeld in 2002, joining forces with the LEE COOPER
ISRAEL Group (via CONCEPT FASHION, headed by Gidi Goldfinger).
SHARE
CAPITAL
Authorized share capital
10,000 ordinary shares of
of which 123 shares amounting to
SHAREHOLDERS
Subject’s shares are held by 2 trustee companies on
behalf of the following companies:
1. CONCEPT FASHION
PROD
2. CORAL
MODEL LTD., 40% (shares are held by ISOP MANAGEMENT & TRUST SERVICES LTD.),
owned by Amir Haberfeld.
DIRECTORS
1.
Amir Haberfeld, General
Manager,
2.
Yakov Haberfeld,
3.
Haim Assayag (CPA),
4.
Ronen Algarisi.
BUSINESS
Importers and marketers of ladies and kids swimwear and
undergarments, under brands "Galit Levy", as well as stockings (brand
"Golden Lady").
Subject also serves as marketers of swimwear imported
by CORAL MODEL LTD. (mainly under the name "Banana").
Subject sells it products via leading local retail chains and department
stores, including NEW HAMASHBIR LAZARCHAN, H&O FASHION, AFRODITE,
LEVANVANIM, TEMPTATION, etc.
Local sole concessionaires for the following international brands (in the
swimsuits and underwear categories): “Disney”, “Fox”, "Lee
Cooper", "Looney Tunes", "Galit Levy”, "Pucca",
"Garfield", “Scooby Doo", Tinkerbelle", "Tom &
Jerry", "Muppets", "Simpson's" and more.
Also sole representative of GOLDEN LADY of Italy.
Advertising
agency: INBAR MERHAV SHAKED.
Operating from rented premises, on an area of 2,000 sq. meters, in
Having 50 - 70 employees (seasonal).
MEANS
Current stock valued at
Initial investment in the establishment of subject
reported to be
According to reports 2009 advertising budget is
Subject’s parent company CONCEPT FASHION encountered serious financial
difficulties in recent years and in November 2010 its shareholders decided to
close down the LEE COOPER chain, however a buyer to the chain was found – see
mote below.
There are 4 charges for unlimited amounts registered on the company's
assets, in favor of Bank Leumi Le’Israel Ltd.
ANNUAL SALES
2007 sales claimed to be
2008 sales claimed to be
2008 sales claimed to be
2010 sales claimed to be
OTHER
COMPANIES
CORAL MODEL LTD., owned by Amir Haberfeld, importers of fashion swimwear.
CONCEPT FASHION PROD
BANKERS
Bank
Leumi Le'Israel Ltd., Kiryat Arye Business Branch (No. 670), Petach
Tikva, account No. 105900/99.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
CHARACTER
AND REPUTATION
LEE COOPER ISRAEL chain headed by CONCEPT FASHION
PROD
CONCEPT FASHION Board announced in mid November that
they will be shut down and all its 350 employees will be fired. Few days later,
publicly traded company BRILL SHOES INDUSTRIES LTD., a leading footwear
manufacturers, importers and retailers, reported they are acquiring CONCEPT
FASHION’s 32 chain stores activities in Israel for NIS 24 million (of which NIS
20 million for inventory). The acquisition deal was signed in December 2010 and
the transaction completion is still pending the parties and authorities
approvals.
Subject has been part of the CONCEPT Group, and as
such is in the midst of the affair, although subject’s Accountant stressed in
the interview with us that CONCEPT situation does not affect subject itself. He
added that BRILL is negotiating to acquire the LEE COOPER activities, exclusive
subject.
It was also reported that Amir Haberfeld submitted to
CONCEPT FASHION’s Board an offer to acquire their share (60%).
Nothing unfavorable learned on subject itself.
Subject is considered a leading company in the local fashion swimsuits
market.
According to a report from May 2008, subject holds 30% of
the swimwear market, 10%-15% of the lingerie market and over 50% of the
pantehose market.
Amir Haberfeld,
was in the past the local Marketing Manager of KLIL YOFI MODEL LTD., leading
local manufacturers and marketers of swimsuits, which went into receivership in
September 2003, following financial difficulties.
Mr. Haberfeld
established CORAL MODEL in order to market swimsuits, mainly under the brand
name Banana.
In mid 2007,
subject gained the concession from D
In March 2008, it was reported that subject enters the
children swimwear, launching the brands "Banana" and "Banana
Kids", as well as "Twitty" for babies, with an overall
investment of
In April 2008, it was reported on subject's summer
advertising campaign with investment of
In June 2010 it was reported that subject purchased
the marketing concession of the women intimate line and pajamas of the Italian
brand LORMAR, with investment of
In September 2009 it was reported that subject
received the concessionaire for "Pucca", with investment of
The
local textile and fashion market is valued at
It should be
pointed up that the fashion and apparel branch has been adversely hit mainly by
the slow-down in local economy in 2009 (reportedly some 30% and more fall in
the branch’s retail sales, especially in small chains), as well as from
amounting competition.
In 2010 the trend
remained mixed, as on one hand local economy has been recovering, and so
general expenditure level by consumer, including in clothing, though on the other
hand the slow down trend in the retail branch is still felt. We assume that
subject has been also negatively affected to a certain extent.
Import of Clothing and Footwear in 2009 summed up to US$ 1,267 million,
comparing to US$ 1,402 million in 2008 (9.6% decrease) and US$ 1,188 million in
2007. Most import comes from
The decrease in 2009 reflects the slow-down trend in the local economy
during 2009, mainly in the first half of the year. The trend reversed in 2010
and import of Clothing and Footwear rose 12% in 2010 1st half comparing
to the parallel period in 2009, reaching US$ 674.6 million.
SUMMARY
In view of the still yet to be resolved situation of
parent company CONCEPT FASHION, despite subject’s Accountant claim it has no
effect on subject’s operations, we believe cautious should be taken at this
stage and for the time being dealings recommended on a secured basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.50 |
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1 |
Rs.73.07 |
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Euro |
1 |
Rs.61.63 |
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 |
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.