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Report Date : |
05.05.2012 |
IDENTIFICATION DETAILS
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Name : |
CRAZY LINE LTD. |
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Registered Office : |
P.O. Box 292, Yavne
(8110102), 1 Nahal Poleg Street, Industrial Zone, Yavne 8122315 |
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Country : |
Israel |
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Date of Incorporation : |
2.10.1990 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and marketers of ladies fashion wear
and accessories |
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No. of Employees : |
800 |
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 – September 30, 2011
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CRAZY LINE LTD.
Telephone 972
8 932 50 05
Fax 972
8 932 50 18
P.O. Box 292, Yavne (8110102)
1 Nahal Poleg Street
Industrial Zone
YAVNE 8122315-ISRAEL
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.
Authorized share capital NIS 14,000.00, divided into -
14,000 ordinary
shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were
issued.
1. Mrs. Rivka (Becky) Levin, 98%,
2. Ido Levin, 1%,
3. Eran Levin, 1%.
Giora Levin, husband of Rivka.
Yair Cafri
Importers and marketers of ladies fashion wear and
accessories.
Subject is using
subcontractors, mainly in China, for manufacturing.
Also operating a retail chain store, under the brand
name “Crazy Line”, with 65 stores (all owned).
Stores are
typically situated in the main shopping malls around the country.
All imported goods are sold in subject's chain stores.
Large portion 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, GREEN LINE GRAPHICS, etc.
Advertising
agency: MCCAN ERICKSON.
Main landlord leasers (for the retail stores): BIG SHOPPING CENTERS, REIT
BRITISH ISRAEL, AZRIELI MALLS GROUP, GAZIT GLOBE.
Subject has a client base of 600,000 listed in its customers’
club, of which 300,000 are active (as of mid 2010).
Operating from premises in 1 Nahal Poleg Street, Industrial Zone, Yavne and
from 65 stores nationwide. Also operating stores abroad (Romania).
Having 500 employees in subject (exclusive subsidiary
L
2008/9 advertising budget is reported to be NIS 9 million annually.
Other financial data not forthcoming.
There are 7 charges for unlimited amounts registered on the company's
assets (financial assets and vehicle), in favor of Bank Leumi
Le’Israel Ltd., The First International Bank of Israel Ltd.
and companies (last charge placed in January 2006).
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 subsidiary)
reported to be over
NIS 200,000,000.
Consolidated 2008 sales (including subsidiary)
reported to be estimated at over NIS 200,000,000.
Consolidated 2009 sales (including subsidiary)
reported to be estimated at
NIS 220,000,000.
Consolidated 2010 sales (including subsidiary)
reported to be estimated at
NIS 200,000,000.
Note: Sales figures are based on media publications; subject does not
release financial data as a principle.
L
CRAZY LINE DEVELOPMENT AND REAL ESTATE LTD.
Bank
Leumi Le’Israel Ltd, Rehovot Business Branch (No. 978), Rehovot,
account no. 182400/92.
Israel
Discount Bank Ltd., Kikar Hamedina Branch (No. 152), Tel Aviv,
account No. 392529.
Mizrahi Tefahot Bank Ltd., Hashmonaim Branch (No. 494), Tel Aviv,
account
No. 144028.
The First International Bank of Israel Ltd., Main Tel Aviv Branch (No.
046), Tel Aviv, account No. 550043.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
In previous interviews subject's officials refused to disclose financial
data.
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 L
Subject
is among the local fashion chains who have been negatively influenced by the
entrnce of new international fashion players to the already highly competitive
local market, including GAP, H&M in 2009/2010, Forever 21, during 2011.
This happens in a local fashion market which has
been highly competitive already. In December 2011 Eran Levin, one of
subject's owners, said to the press that they chose the strategy of cutting
prices significantly to face the new situation, a move which eroded their gross
profit (had a much lower gross profit than in 2010).
In late 2004 subject started its overseas operations
with the opening of a store in Germany. Later, in beginning of 2007, it started
activities in Romania and Hungary.
However, the overseas strategy proved to be
unsuccessful and in February 2009 it was reported on closing its operations in
Germany. According to a report from March 2011, subject lost some NIS 3 million
in the Germany operations.
During the first quarter of 2007 subject acquired the
young trendy ladies fashion company L
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.
In December 2008, it was reported that subject
invested total of NIS 2.3 million in the opening of 5 new shops, mainly in
shopping malls in different cities.
In July 2009 it was reported that subject invested NIS
3.5 million in the opening of 5 new shops and renovation of several existing
shops, mainly in shopping malls in different cities.
In
January 2010 it was reported that subject will pay a leading Israel model
US$
100,000 for representing subject for 2 seasons.
In
May 2010 it was reported subject is opening 3 stores with an investment of NIS
2 million, and a renovation of existing stores with an investment of
NIS
2 million.
According to reports from the beginning of
2012, total revenues of the local fashion market are NIS 10 billion per annum.
Based on 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.
According to the Central Bureau of Statistics (CBS), import of
Clothing and Footwear in 2011 kept the rising trend from 2010: import rose by
close to 19%, after rising 13.4% in 2010 from 2009, summing up to US$ 1,707.3
million (in 2009 the local market experienced a slow-down). 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.
Despite the fears
due to the slow-down trend in the local economy, mainly since mid 2011, sales
by the local fashion –clothing and footwear- branch in 2011 witnessed a growth.
The income of fashion chains (which covers 1,350 shops, the major chunk of
fashion sales in Israel) summed up to NIS 4.52 billion, representing a 5.7%
rise from 2010 in money terms. Sales during the year characterized in ups and
downs, though eventually they came higher than 2010, a year which was better
than 2009, when the branch suffered from slow-down (coupled with the general
local economic environment) and overall sales indicators were negative. 2010 sales were only marginally positive. Sales have
been also influenced by the entrnce of new international fashion players
to the already highly competitive local market (as noted above).
According to sources in the local fashion branch, in recent months the
branch entered
again a freezing mode. It may be explained by several factors, including the
present slow-down in local economy, the fierce competition and more.
According
to the Central Bureau of Statistics (CBS), private consumption expenditure by
Israeli households in 2011 in clothing, footwear and personal effects rose by
mere 1.3% from 2010, after a 9.5% increase from 2009.
Notwithstanding the refusal to disclose
financial data, considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.72 |
|
|
1 |
Rs.86.98 |
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Euro |
1 |
Rs.70.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
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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 |
|
-- |
NB |
New Business |
-- |
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.