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Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
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Name : |
INTER JEANS LTD. |
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Registered Office : |
6 Hamachtesh Street Lev Magor Building Industrial Zone Holon 5881003 |
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Country : |
Israel |
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Date of Incorporation : |
12.09.2006. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and
marketers of women and men fashion wear, footwear and accessories,
specializing in jeans wear. |
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No. of Employees : |
Not Available |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel''s energy security
outlook. The Leviathan field was one of the world''s largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel''s natural gas demand beginning mid-2013. In mid-2011,
public protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
INTER JEANS LTD.
Telephone 972
3 654 11 15
Fax 972
3 654 11 16
6 Hamachtesh
Street
Lev Magor Building
Industrial Zone
HOLON 5881003 ISRAEL
A private limited company, incorporated as per file No. 51-387405-7 on the
12.09.2006.
Subject was established after its shareholders gained the exclusive
concession from Italian fashion company REPLAY, instead of the local
concessionaire that operated in Israel before (although we were unable to
confirm this for sure, we assume actual sales started only at the end of 2007
or beginning of 2008).
Authorized share capital NIS 50,000.00, divided into -
50,000 ordinary shares of NIS 1.00
each,
of which 100 shares amounting to NIS 100.00 were issued.
1. Gideon Mouliev, 25%,
2. Shalom Mouliev, 25%,
3. Ron Harari, 25%,
4. Yaakov Peretz, 25%.
1.
Gideon Mouliev,
2.
Shalom Mouliev,
3.
Ron Harari,
4.
Yaakov Peretz.
1. Gideon Mouliev,
2. Meir Meirovich.
Importers and marketers of women and men fashion wear,
footwear and accessories, specializing in jeans wear.
Operating a retail stores chain (a total of 24 branches),
selling goods (imported by subject) under brand "Replay", as part of
the exclusive concession from REPLAY, of Italy and "NYou Madden" as
part of exclusive concession of STEVE MADDEN.
Also sole representatives of (in footwear):
BETSY JOHNSON, MARK ECKO, CALVIN KLEIN, ZOO YORK, CHARLES DAVID, all of
USA.
Operating from rented premises,
part of M.G.S SPORT headquarters, on an area of well over 1,000
sq. meters, in 6 Hamachtesh Street, Lev Magor Building, Industrial Zone, Holon,
as well as from subject's branches countrywide.
Number of employees not forthcoming, known to be of
several tens.
Having 1,100
employees serving M.G.S Group as of 2010 (current number of employees
unavailable).
Financial data not forthcoming.
M.G.S Group is known to be financially solid.
There are 5 charges for unlimited amounts, as well as 1 charge for the sum
of NIS 1,000,000 registered on the company's assets (financial assets and fixed
assets), in favor of Bank Leumi Le'Israel Ltd. and Union Bank of
Israel Ltd. (last 2 charges placed January-April 2013).
Sales figures
unavailable. According to media reports, M.G.S Group’s annual sales are several
NIS hundred million (NIS 300 million in some reports and over NIS 500 million
in others).
M.G.S SPORT TRADING LTD., owned by Gideon Mouliev (via M.G.S
INTERNATIONAL), importers, distributors and marketers of
sportswear, sporting goods, equipment accessories, mainly footwear and apparel.
Also operating retail chain stores for selling subject's goods, as well as by
other local suppliers. 51 sports apparel and goods retail stores throughout the country, under the names 'Mega Sport' chain
(40 stores + 7 surplus), 'United Sport' (2 shops) 'Elital' (3 shops), 1
'Skechers' shop and 1 duty-free shop (in partnership). local exclusive concessionaires of "Hi-Tec",
"Diadora", "Converse/Allstar", "Arena", "Scratcher’s", "OP", and more. Also holds
JAMES RICHARDSON -
M.G.S LIMITED PARTNERSHIP, 49%, operates a duty-free shop in the Ben-Gurion
Intl. Airport for sports goods.
ELITAL SPORT
LIMITED PARTNERSHIP, operating a surplus sports and leisure footwear store.
LIFE SPORT LTD.,
24.5%, local exclusive concessionaires of "Adidas"
and “Reebok”, operating some 25 shops,
A.T.I.
LTD.
M.G.S.
INTERNATIONAL LTD., a holding company, owned by Gideon Moulaiev,
MOULAIEV GIDEON
LTD, operating 9 shops for sports goods in the Beer Sheva District under style
"Aluf Hasport".
Union Bank of Israel
Ltd., Main Branch (No. 063), Tel Aviv.
Bank Leumi
Le'Israel Ltd., Hahashmonaim Business Branch (No. 817), Tel Aviv.
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.
The "Replay" brand is considered among the leading ones in the
local jeans market, a market which rolls estimated yearly volume of NIS 500 million
(according to a report from 2010). However the market is highly competitive and
it is estimated that local jeans chains, such as subject's, have been suffering
drop in sales due to the entrance of international brands to the local market,
such as American Eagle, Gap, Forever 21, H&M and others, who opened chains
in recent years.
In 2007 M.G.S
acquired from Eliezer Fishman, the activities of MEGAMART SPORTING
GOODS LTD., which operates Israel's leading sporting goods retail chain, "Mega Sport", for reported sum of US$ 21 million. Transaction included also the wholesale activities, as well as the sole
concessions of MEGAMART, e.g. Kappa, Champion, Everlast, Merrell, etc. It was
reported that the “Sacony” concession was not part of the deal. MEGAMART operated since 1996.
Above acquisition
turned M.G.S into the leading player in the market for sporting goods. The
“Mega Sport” chain is the largest sporting and leisure chain in Israel.
In 2008 M.G.S.
also acquired ELITAL Sport.
In January 2008,
it was reported that subject will invest NIS
In December 2008
and January 2009 it was reported that subject will be the representatives of
MARK ECKO and ZOO YORK.
In
January 2009 ADIDAS Group of Germany purchased control (51%) of “ADIDAS
ISRAEL”, which is operated by M.G.S.’s subsidiary LIFE SPORT LTD., for a sum of NIS 30-40 million. LIFE SPORT holds the local exclusive concession for “Adidas” since 2003, when ADIDAS sold it to
LIFE SPORT.
In
January 2009 subject bought the concession for the
"Steve Madden" shoes and the "Replay"
footwear brand from Yosi Ashkenazi, taking upon itself the US$ 2
million debts of Mr. Ashkenazi, who encounteref financial troubles.
In the 2nd half of 2009 it was repported
that Group is openning a "Skechers" store in Tel Aviv with an
investment of US$ 250,000 and a "Steve Madden" store in Ashdod with
an investment of NIS 500,000.
In October 2010 it
was reported that subject is opening a retail chain store under the name
"NYou".
In April 2011 it
was reported that subject received the representation of CHARLES DAVID.
In October 2011 it
was reported that subject received the representation (in shoes) of BETSY JOHNSON and CALVIN KLEIN.
In July 2012 it
was reported that subject's retail stores launch a nail polish line as an
accessory for the footwear.
In May 2013 it was
reported that subject is opening 4 new shops.
In July 2013 it
was reported that subject rented a 100 sq. meters retail store in Azrieli Mall
in Tel Aviv, paying NIS 50,000 per month.
According to reports from the end of 2012,
total revenues of the local fashion market are NIS 11 billion per annum. 40% of
sales are in the large fashion chains, 34% in other smaller chains, and the
rest in private shops.
According
to the fashion market survey, which monitors sales by the local fashion chains,
2012 marked almost a freeze in revenues, with mere 0.7% increase from 2011. The
data reveals that in 2012 41 fashion chains (out of 72 chains with total of
over 1,600 shops) noted decrease in sales of aparel and footwear.
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 2012 rose by 5.1% (in $ terms, marked 13.3% in NIS
currency terms), summing up to US$ 1,759 million. That data shows on the
continuing growing trend from the last couple of years – by 19% and by 13.4% in
2011 and 2010, respectively, in comparison to the previous year. 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 has been significantly influenced by the entrance of new international
fashion players to the already highly competitive local market (GAP, H&M in
2009/2010, Forever 21 in 2011).
Sources in the local fashion branch noted that in the last period the branch
re-entered
slow-down and stagnation, resulting in drop in revenues. There have been also
few collapses of veteran and big players in some niches, such as children's
apparel. The is explained by several
factors, including the present slow-down in local economy, and the fierce
competition where the entrance of the strong international chains are dragging
prices down but do not bring to expansion of the fashion market.
From the CBS National Accounts for 2012, it
turns that expenditure by local households on private consumption grew by 2.7%
from 2011, after rising by 3.8% in 2011. Expenditure on clothing, footwear and personal effects rose by 7.2% (after 2.4%
rise in 2011).
Per-capita expenditure increased by 0.9%
(1.9% rise in 2011).
Per capita expenditure for private consumption on non-durable goods
rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects
increases by 1.3% in expenditure on food,
beverage and tobacco and 4.5% expenditure
on clothing, footwear and personal effects.
Notwithstanding the refusal to disclose data,
subject is considered good for trade engagements.
Note: Since February 2013 Israel Post has
started using a new area code method of 7 digits (the old method of 5 digits is
no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.91.95 |
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Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
|
<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.