MIRA INFORM REPORT

 

 

Report Date :

21.03.2013

 

IDENTIFICATION DETAILS

 

Name :

EXPOSE FASHION LTD.

 

 

Registered Office :

P.O. Box 3578, Caesarea, 11 Leshem Street, Northern Industrial Park, Caesarea 3088900

 

 

Country :

Israel

 

 

Date of Incorporation :

05.09.2005

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of ladies and kids swimwear and undergarments, under brands "Galit Levy", as well as stockings (brand "Golden Lady").

 

 

No. of Employees :

60

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Usually correct

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

israel - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are 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. 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. 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

 

 


Company name and address

 

EXPOSE FASHION LTD.

Telephone 972 4 623 06 86

Fax           972 4 623 06 88

P.O. Box 3578, Caesarea

11 Leshem Street

Northern Industrial Park

CAESAREA 3088900 ISRAEL

 

 

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 by its original shareholders, in view of joining their activities (of swimwear), i.e. of CORAL MODEL LTD., established by Amir Haberfeld in 2002, and by LEE COOPER ISRAEL Group (via CONCEPT FASHION, then headed by Gidi Goldfinger).

 

 

SHARE CAPITAL

 

Authorized share capital NIS 10,000.00, divided into -

                   10,000 ordinary shares of NIS 1.00 each,

of which 1,000 shares amounting to NIS 1,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    CORAL MODEL LTD., 49%, owned by Amir Haberfeld,

2.    Ofer Ganezi, 22%,

3.    Moshe Ganezi, 19%,

4.    Z.W.K. INVESTMENTS 2011 LTD., 10%, owned by Yuval Kidron, CPA.

 

In September 2011, Ofer and Moshe Ganezi (brothers), shareholders in BRILL SHOE INDUSTRIES LTD. (19.25% together), who acquired the activities of LEE COOPER ISRAEL, acquired, jointly with CPA Yuval Kidron, the holdings of CONCEPT FASHION PRODUCTS MARKETING (1995) LTD. in subject (60% at the sale, while Amir Haberfeld held beforehand 40%).

 

According to a report from August 2011 the Ganezi brothers paid NIS 10 million for their shares in subject.

 

 

DIRECTORS

 

1.      Amir Haberfeld, General Manager,

2.      Yaakov Haberfeld,

3.      Ofer Ganezi,

4.      Moshe Ganezi.

 

 

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 its 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", "Smurfs" and more.

Also sole representative of GOLDEN LADY and LORMAR, both of Italy.

Advertising agency: INBAR MERHAV SHAKED.

 

Operating from rented premises, on an area of 2,000 sq. meters, in 11 Leshem Street, Northern Industrial Park, Caesarea. Premises also serves sister company CORAL MODEL LTD.

 

Having 60 employees (same as in the beginning of 2012).

 

 

MEANS

 

Current stock is valued at NIS 5,000,000 (similar to the beginning of 2012 and to 2011).

 

According to reports 2009 advertising budget is NIS 4,000,000.

 

There is 1 charge for an unlimited amount registered on the company's assets, in favor of Mizrahi Tefahot Bank Ltd. (charge placed July 2011).

 

 

REVENUES

 

2007 sales claimed to be NIS 27,000,000.

2008 sales claimed to be NIS 30,000,000.

2008 sales claimed to be NIS 30,000,000.

2010 sales claimed to be NIS 30,500,000.

2011 sales claimed to be NIS 30,000,000.

2012 sales claimed to be NIS 29,000,000.

 

 

OTHER COMPANIES

 

CORAL MODEL LTD., owned by Amir Haberfeld, importers of fashion swimwear.

 

BRILL SHOES INDUSTRIES LTD., 19.25% held by Ganezi brothers, designers, manufacturers, importers, marketers and exporters of footwear, apparel and fashion accessories. Publicly traded on the Tel Aviv Stock Exchange, current market value US$ 54.9 million. Its main subsidiaries:

SUPER BRANDS LTD., 100%

S.B.N CLOTHING LTD., 50%, holding the NAUTICA brand rights, operates 14 stores.

KOL NAAL CENTER LTD., 75%., operating a retail chain store under the name "Kol Naal Center" with 6 stores.

BRILL FASHION LTD. (known as Lee Cooper Israel), 100%, designers, manufacturers (via sub-contractors), importers and marketers of fashion wear. Also operating retail store chain of "Lee Cooper" (33 shops).

 

Also controlled by Ganezi Brothers & Family:

HOLIS INDUSTRIES LTD., designers, manufacturers and marketers of window coverings (e.g. blinds, shades, curtain track systems). 2011 sales US$ 51 million.

ORGON INDUSTRIES (1972) LTD., offering full range of shading solutions.

TZELON BLINDS MARKETING (1993) LTD., marketing HOLIS's products.

OR-SUN LTD., 50%, importers and marketers of home textile goods.

POLYLAC PAINTS AND LACQUERS INDUSTRIES LTD., manufacturers, marketers and exporters of industrial paints, lacquers, etc.

POLYLAC PROPERTIES HOLDINGS (1980) LTD., yielding real estate holdings.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Tel Aviv Central Business branch (No. 461), Tel Aviv, account No. 367536.

 

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m accounts.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt 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.

 

Subject’s former parent company CONCEPT FASHION encountered serious financial difficulties in recent years and in March 2011 BRILL Group, a leading footwear manufacturers, importers and retailers, acquired of CONCEPT’s 32 shops' activities in Israel for NIS 24 million (of which NIS 20 million for inventory).

Ofer and Moshe Ganezi, holding 19.25% of BRILL, announced on their intention to acquire CONCEPT's shares in subject (60%), which they did privately, not connected to BRILL. Deal was completed in September 2011.

Ofer Ganezi and Moshe Ganezi are well-known local businessmen.

 

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.

Haberfeld established CORAL MODEL in order to market swimsuits, mainly under the brand name Banana.

 

In mid 2007, subject gained the concession from DISNEY and FOX for the cartoons on subject's underwear and pajamas. Reportedly, subject invested
NIS 500,000 in promotion.

 

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 NIS 900,000.

 

In April 2008, it was reported on subject's summer advertising campaign with investment of NIS 1 million.

 

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 NIS 500,000.

 

In September 2009 it was reported that subject received the concessionaire for "Pucca", with investment of NIS 200,000.

 

In February 2010 it was reported that subject acquired the concessionaire for "Snoopy", with investment of NIS 500,000.

 

In July 2010 it was reported that subject acquired the representation of LORMAR undergarments brand for NIS 500,000 and invested over US$ 150,000 in the launching of the brand in Israel.

 

In May 2011 it was reported that subject invested some NIS 200,000 in the acquisition of the "Smurf" brand for undergarments.

 

According to reports from the end of 2012, total revenues of the local fashion market are NIS 11 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 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.

 

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, in recent period the branch re-entered stagnation, and drop in revenues. It 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 CBS preliminary National Accounts for 2012, it turns that 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 increase by 4.5% expenditure on clothing, footwear and personal effects.

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since the beginning of 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.54.37

UK Pound

1

Rs.82.07

Euro

1

Rs.70.03

 

 

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

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.