MIRA INFORM
REPORT
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Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
FOX - WIESEL LTD. |
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Formerly Known As : |
WIESEL TEXTILE MARKETING LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Year of Establishment : |
1990 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Designers, Importers, Manufacturers, Marketers, Exporters and retailers of clothes and fashion
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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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 – 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
FOX - WIESEL LTD.
Telephone 972 3 905 01 00
Fax 972 3 905 02 06; 905 02 00
Fox House
HISTORY & LEGAL FORMATION
Originally incorporated
as a sole proprietorship in 1990.
Converted into a
private limited company, registered as per file No. 51-215760-3 on the
01.06.1995.
Originally
registered under the name WIESEL TEXTILE MARKETING LTD., which changed to the
present name on 23.01.2002.
On 15.04.2002
published a prospectus offering shares to the public on the Tel Aviv Stock
Exchange (raising a sum of
SHARE CAPITAL
Authorized share
capital
15,000,000
ordinary shares of
of which
12,872,799 shares amounting to
SHAREHOLDERS
1.
WIESEL HOLDINGS A.I.H LTD., 26.7%, equally owned by
Harel Eliezer Wiesel, Iftach Wiesel and Assaf Wiesel,
2.
Avraham Dov Fuchs (through TRICO FOX LTD.), 25.2%,
3.
Lev Levayev (through MEMORAND MANAGEMENT (1998)
LTD.), 19.7%,
4.
BANK LEUMI LEISRAEL LTD., 12.2%, local 2nd
largest banking corporation,
5.
Shares are also traded on the Tel Aviv Stock
Exchange.
DIRECTORS
1.
Harel Wiesel, Chairman and General Manager,
2.
Avraham Dov Fuchs,
3.
Ms. Michal Fuchs Rivkind,
4.
Assaf Wiesel,
5.
Elad Vered,
6.
Iftach Wiesel,
7.
Ran Arnon,
8.
Avraham Zeldman,
9.
Ms. Chagit Sofiev-Leviev,
10.
Shay Levin,
11.
Roni Taub,
12.
Yaron Bloch,
13.
Ms. Eilat Levi,
14.
Ms. Sabina Biran,
15.
BUSINESS
Designers,
importers, manufacturers, marketers, exporters and retailers of clothes and
fashion accessories under the brand name “Fox”, under 4 categories: "Fox
Men", "Fox Women", "Fox Kids" and "Fox
Baby". Subject also imports and marketers household product under the name
"Fox Home".
Also selling to
wholesalers, shops and institutional bodies, as well as to subject’s
concessionaires overseas.
Manufacturing is
carried out through some 20 suppliers and subcontractors abroad (though working
mostly with 2 large subcontractors). Until 2008 subject operated also its own
manufacturing line in
Major foreign
supplier: WINGSRICH, Hong Kong/
Operating 183
branches in
In addition,
operating via concessionaires through 257 branches and Points of Sale abroad
under the name "Fox" in 14 countries:
Subject also
operates 5 branches of "Fox Home".
Subject, via its
subsidiaries, also marketers clothes and fashion accessories under the brand
name “Sacks” – 8 branches, "Billabong" – 20 branches and home care
and body care products under the name "Lalin" – 54 branches.
Operating from
rented premises (headquarters and offices, warehouse and logistics center) on an
area of 15,680 sq. meters (12,600 sq. meters built), in Hahermon street,
Airport City (near Ben Gurion Airport, Lod), and from retail stores nationwide
(as of end of 2009 rents 176 active shops, situated mainly in shopping malls
and centers).
Landlord in
Having some 1,644
employees in subject (had 1,920 employees at the end of 2008) and further 581
employees in subsidiaries. The decrease is part of an efficiency plan subject
went through.
MEANS
In June 2006
subject issued bonds to the public through the Tel Aviv Stock Exchange, raising
a sum of
Consolidated B/S shows:
ASSETS 31.12.2009 30.09.2010
Current assets
Cash
and cash equivalents 53,050 51,955
Sort
term investments 126,267 105,026
Customers 83,828 84,109
Other
debtors 24,856 34,355
Stock 121,832 115,870
409,833 391,315
Non-current assets
Investments in affiliated companies 5,642 4,552
Fixed assets (net) 112,502 119,364
Goodwill and intangible assets 34,510 59,529
Other non-current assets 42,540 16,398
195,194 199,843
605,027 591,158
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LIABILITIES
Current liabilities 121,654 116,179
Non-current liabilities 139,816 110,946
Equity 343,557 364,033
605,027 591,158
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Current market
value US$ 118.1 million.
There are 11
charges for unlimited amounts, as well as 2 charges for total of US$ 2,200,000.00
registered on the company's assets, in favor of Bank Leumi Le’Israel Ltd., HSBC
Bank Plc. and IBM
ANNUAL SALES
Consolidated
Statement of Income
Year
ended in 31.12
2007 2008 2009
Sales 652,806 684,525 593,305
Gross profit 309,582 359,704 299,765
Operating income 38,862 49,718 12,206
Pre-tax income 29,885 34,262 31,859
Net income 23,750 23,192 30,318
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Consolidated first 3 quarters sales of 2010 were NIS
516,098,000 (22.6% increase compared to the parallel period in 2009), making a
gross profit of
OTHER COMPANIES
FOX - WIESEL CHINA
LTD., a subsidiary in
FOX - WIESEL
CYPRUS LTD., 100%,
FOX-LEVIEV LLC,
50%,
BILLY HOUSE LTD.
("Billabong
LALIN CANDLES AND
SOAPS LTD., 50% in each, manufacturers and marketers of home care and body care
products and accessories, including soaps, candles, body care items,
toiletries, ambiance products, etc. Operating 54 chain stores. Fully owns LALIN
INTERNATIONAL LTD.
A.H. FASHION
MANUFACTURE AND MARKETING 3020 LTD. (known as "Sack's"), 50%.
Operating 8 chain stores.
WIESEL REAL ESTATE
A.I.H. (1999) LTD., sister company.
TRICO FOX LTD.,
leasers of real estate.
BANKERS
Bank Leumi Le’Israel
Ltd., Allenby Business Branch (No. 802), Tel Aviv, account No. 60600/34.
HSBC Bank Plc.,
Main Branch (No. 101), Tel Aviv, account No. 500494.
A check with the Central Banks' database did not reveal anything
detrimental regarding subject a/m accounts.
CHARACTER AND REPUTATION
In May 2007, the
Securities Authority raided on subject's offices, following suspicious of
violating securities' rules by using "inside information" for making
profits. Nothing was published on this affair since, though the matter is still
under investigation.
Apart from that,
nothing unfavorable learned.
FOX – WIESEL is a
leading vendor in fashion wear for women, men and kids in
In
September 2004, subject signed a deal to grant MEMORAND MANAGEMENT (1998)
LTD., a company owned by businessman Lev
Leviev, a license to open stores in
A
new company FOX-LEVIEV LLC was established by subject
and MEMORAND in
In
August 2005, subject signed a deal to give HE MIAN of
In
2005 5 fashion stores under subject’s name were openned in
The
store in
Since 2005/6
subject (via concessionaires) also began expansion into the Eastern and Central
European markets, starting with
Since 2007/8 also
expanded to
In July 2009
subject opened a store in
In October 2006
subject acquired 50% of BILLY HOUSE LTD. ("Billabong
In March 2007,
subject completed the acquisition of 50% of LALIN CANDLES AND SOAPS LTD. and
LALIN INTERNATIONAL LTD., manufacturers and marketers of candles and soaps, in
consideration of
In June 2007,
subject acquired 50% of fashion retail store in chain (4 boutiques) Sack's
(company name is A.H. FASHION MANUFACTURE AND MARKETING 3020 LTD.), in consideration
of
In mid 2007
subject launched streamlining measures in order to improve the financial
status, including closing down non-profitable shops abroad in
In view of the
economic slow-down in the local market during 2009, as well as into 2010,
especially in the fashion retail business, subject took further measures
designed to cut costs. As part of the re-organization it erased its sub-chain
brands Fox-Kids, Fox-Man and Fox-Baby and unified all under a new logo design. Subject also intended to unite the different brand
stores into one larger store thus lowering store number from 183 to some 100
stores.
In
July 2009 subject announced its intention to opena new chain under the brand
name “Fox Home” for home textile and accessories. The household products market
is estimated at
In November 2009 it was reported that subject is launching
a new line of maternity clothing, which will operate under the brand name
"Fox Maternity".
Subject’s concessionaire in
In March 2010 LALIN signed an agremment with BRAND EMPIRE
to open 30 LALIN store in the
In July 2010 subject signed an an agreement with AEO
MANAGEMENT CO. in which subject will be the sole local representatives of
"American Eagle" and "Aerie". Subject is intending to open stores under the
"American Eagle" brand and is estimated to invest
In December 2010 it was reported on openning a branch in
Kfar Saba with an investment of
Local
textile and fashion market is valued at
According to surveys, around 50% and more is women's
fashion. Moreover, 40% of fashion stores in
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, part of the global economic
crisis.
According
to a local retail research company, retail fashion chains an overall decrease
of over 5% in proceeds comparing to
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended several US$ millions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.20 |
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1 |
Rs.70.27 |
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Euro |
1 |
Rs.59.99 |
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.