MIRA INFORM REPORT
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Report Date : |
29.01.2011 |
IDENTIFICATION DETAILS
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Name : |
HONIGMAN &
SONS LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
19.02.1980. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, importers, and marketers of women, men, and children
fashion, operating fashion retail store chains etc. |
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$ 1,000,000 |
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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 – 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 and address
HONIGMAN & SONS LTD.
Telephone 972 3 680 55 00
Fax 72 3 518 05 75
TEL AVIV 66074
HISTORY & LEGAL FORMATION
Originally
established as a non-registered business in 1947.
Converted into a
private limited company and registered as such as per file
No. 51-084496-2 on
the 19.02.1980.
SHARE CAPITAL
Authorized share
capital
2
management shares (issued),
2,049,991
ordinary "A" shares (349,992 shares issued),
7
ordinary shares (6 shares issued), all of
of which shares
amounting to
SHAREHOLDERS
1.
Jacob Honigman, 50%,
2.
Micha Honigman, 50%.
DIRECTORS
1.
Micha Honigman, born 1953,
2.
Jacob Honigman, born 1945, founder of subject,
brother of Micha.
GENERAL MANAGER
Micha Ronen
BUSINESS
Manufacturers (via
foreign subcontractors abroad), importers, and marketers of women, men, and
children fashion, operating fashion retail store chains under the following
categories:
“Honigman” - for
women, some 54 shops,
“TNT” - for young
ladies, some 55 shops,
“Honigman Menswear”,
for gentlemen,
“Honigman Kids” -
for kids, 56 shops (including the “Virus” brand of extreme fashion of kids).
“Honigman Baby”,
for babies.
Altogether
operating 165 shops in
Via subsidiary,
operating 8 stores in
Manufacturing is
carried out via subcontractors in
Most of subject’s
suppliers are foreign.
Advertising
agencies: YEHOSHUA TBWA, DAVID.
Operating from
main premises (offices and logistics center), on an area of 10,000 sq. meters
(5,000 owned by subject and 5,000 rented), in 58, Salame Road, Tel Aviv, and
from another logistics center, on an rented area of 3,000 sq. meters, in 6
Plotisky Street, Old Industrial Zone, Rishon Le-Zion.
Operating from
some 170 retail stores nationwide.
Having in all
1,200 employees (similar to 2010 and 2009).
MEANS
It was reported
that during 2007 subject invested
In December 2007,
it was reported on
Owned property in
2008 advertising
budget of all chains is reported to be
There are 16
charges for unlimited amounts registered on the company's assets, in favor of
Bank Hapoalim Ltd., Mizrahi Tefahot Bank Ltd., The First International bank of
Israel Ltd., Union Bank of Israel Ltd., Israel Discount Bank Ltd., Mercantile
Discount Bank Ltd., Bank Leumi Le’Israel Ltd. and IBM Company.
ANNUAL SALES
2005 sales were circa
2006 sales reported to be
2007 sales claimed to be
2008 sales claimed to be
Later sales figures not forthcoming.
OTHER COMPANIES
HONIGMAN ROMANIA
S.R.L, 100%, operating 8 stores in
HONIGMAN AND SONS ASSETS
(1986) LTD., sister company, a holding company.
BANKERS
Mizrahi Tefahot
Bank Ltd., Tel Aviv Main Business Branch (No. 461), Tel Aviv.
Bank Leumi
Le’Israel Ltd., Allenby Business Branch (No. 802), Tel Aviv.
CHARACTER AND REPUTATION
Nothing unfavorable
learned.
Subject, like other local fashion retail chains, has been suffering from
the slow-down in the local fashion arena in 2009/2010, also part of the general
slow-down in economy, although in most areas there has been a recovery, unlike
the fashion sector – see more below. Subject has been taking streamlining
measures, and according to reports plans to close down 5 shops during 2011
(after closing 2 shops in 2010). Yet, subject’s new appointed General Manager,
Mocha Ronen (taking the position from subject’s shareholders who used to manage
the chain all the years), said they plan to open 6 new shops during 2011-2012.
Subject is a long
established company enjoying a good reputation in its field. It is among the
local leading and popular fashion chain stores with remarkable rate of growth
in last years, like several other local fashion chains.
In May 2007, it was
reported that subject is opening a TNT retail chain in
In February 2009 it was
reported that subject is opening a "Honigman" store in
Reports in the
media in the last several years on subject:
April 2008:
subject rented 120 sq. meters for a new “Hongman Kids” shop in Hazahav Shopping
Mall in Rishon Le-Zion, paying US$ 62 per meter per month, in a 6 years
contract.
July 2008: subject will
open in the new Teberias shopping mall shops of “Honigman Women”, “Honigman
Men” and “Honigman Kids” on total area of 450 sq. meters, as well as “TNT” shop
on further 200 sq. meters.
October 2009:
Opening its first “Honigman Man” shops in G-Mall in Kfar Saba and in
January 2010: Openning a
new shop for “Honigman Man” brand in Hakeryon Mall, a shop on an area of 100
sq. meters, with investment
In July 2010 it
was reported that TNT (subject’s sub-chain) is replacing its advertising agency
to DAVID agency, which will take care of TNT advertising budget, estimated at
annual volume of
In December 2010
it was reported that subject received the exclusive license to market in
IOsrael fashion accessories of the American pop star Justin Bieber.
The
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
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, including the entrance of new international fashion actors (GAP,
H&M) in 2009/2010 to the local fashion market, which has been highly
competitive already.
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.
According to the Chairman of the Textile and Fashion
division of the Industrialists’ Association, the sales of the textile industry
in 2008 reached
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.
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.
According
to the Central Bureau of Statistics, the current expenditure for private
consumption in 2009 for clothing, footwear and personal items fell marginally
(0.7%) from 2008, when it rose by 4.1% from 2007. 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).
A 13% rise in
expenditure for the said goods occurred in the 1st half of 2010
comparing to 2009, reflecting the recovery (albeit slow) trend in the market.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 1,000,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.74 |
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1 |
Rs.72.73 |
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Euro |
1 |
Rs.62.73 |
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.