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Report No. : |
323553 |
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Report Date : |
28.05.2015 |
IDENTIFICATION DETAILS
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Name : |
TOP TEN FASHION
ACCESSORIES LTD. |
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Registered Office : |
P.O.
Box 11389, 24 Haamal Street , Afek Park, Rosh Haayin, 4809267 |
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Country : |
Israel |
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Date of Incorporation : |
15.08.2004 |
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Com. Reg. No.: |
51-357913-6 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is Importers and marketers of fashion accessories (jewelry, hand bags, scarves, hair accessories, belts |
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No. of Employee : |
600 - 700 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Israel |
B1 |
B1 |
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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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.
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Source
: CIA |
TOP TEN FASHION ACCESSORIES LTD.
(Also known as
TOPTEN)
Telephone 972 3 941 27 88
Fax 972 3 941 95
57
P.O. Box 11389
24 Haamal Street
Afek Park
ROSH HAAYIN, 4809267 ISRAEL
A private limited company, incorporated as
per file No. 51-357913-6 on the 15.08.2004.
Authorized share capital NIS 39,100.00,
divided into -
39,100 ordinary shares of NIS 1.00 each,
of which 20,000 shares amounting to NIS 0.10
were issued.
1. Yosef (Yossi) Gabizon Shasha,
32.5%,
2. Nisim Gabi, 25%,
3. Yuval Shani, 12.5%,
4. Amit Shok, 10%,
5. Oren Bar-Gil, 10%,
6. Mariano Karp, 10%.
Mariano Karp.
Importers and marketers of fashion
accessories (jewelry, hand bags, scarves, hair accessories, belts, etc.),
operating a retail chain store under the name "TopTen' of some 70 branches,
in which goods are sold.
Subject is part of CAROLINA LEMKE Group,
which includes besides subject another 2 retail chains: HOODIES (apparel) and
CAROLINA LEMKE (eye glasses), both controlled by Yossi Gabizon, Nisim Gabi and
subject's other shareholders (as well as few others). Having some 180 branches
in the whole CAROLINA LEMKE Group. In May 2015 Group launched its 4th
retail chain, for discounted apparel (for all the family), as well as
accessories and cosmetics, under the name "Urbanika".
Operating from rented premises, which serve
the Group, on an area of 2,000 sq. meters, in 24 Haamal Street, Afek Park, Rosh
Haayin, and from some 70 retail stores countrywide, located mainly in main
shopping malls and outlets.
Having 600 - 700 employees.
Having some 1,800 employees serving the
Group.
Financial data not forthcoming.
In early 2013 there were negotiations for
the sale of 50.01% of CAROLINA LEMKE Group to local leading fashion player
CASTRO, reportedly for NIS 100 million (giving the Group a total value of NIS
200 million). Eventually the sale did not pull through.
According to the report some NIS 80
million-NIS 100 million are to be invested in the establishing of the
"Urbanica" chain.
There are 4 charges for unlimited amounts registered on the company's
assets (financial assets and fixed assets), in favor of Israel Discount Bank
Ltd. (last charge placed November 2012).
2014 sales claimed to be NIS 120,000,000.
Group's consolidated 2014 sales claimed to be NIS 395,000,000.
According to previous media reports, subject, as well as HOODIES and
CAROLINA LEMKE chains said to be profitable.
Sister companies, owned by similar
shareholders as subject:
HOODIES LTD., established 2007,
manufacturers, importers and marketers of urban fashion apparel catering for
teenagers and up (64 braches).
CAROLINA LEMKE LTD., designers,
manufacturers, importers and marketers of sunglasses and frames, operating a
retail chain store (47 braches).
URBANIKA DESIGN LTD., operating the newly
established discounted apparel and fashion accessories chain (1 store).
Israel Discount Bank Ltd., Belfour Branch
(No. 148), Bat Yam, account
No. 718718.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
Nothing
unfavorable learned.
Subject's Group is
well-known popular fashion and accessories retail chain by teenagers.
Besides his retail
activities, Yossi Gabizon is known to be manufacturing of fashion accessories
in China.
In March 2014 it
was reported on advanced negotiations between subject's shareholders and OSNAT
JEWELRIES, a chain of 28 jewelries counters in shopping malls, to buy control
in the chain in value of NIS 5 million. We did not find later indication on
that matter, and do not know if has been materialized.
In May 2014 it was
reported that subject opened 3 branches with an investment of NIS 1 million.
In July 2014 it
was reported that CAROLINA LEMKE intends to open branches in Spain (Barcelona),
Canada Australia, Mexico, South Africa and UK, as well as booths in malls in
the USA. According to a report from January 2015, US$ 900,000 invested in the
first branch in Barcelona.
In May 2015 the Group opened its first
"Urbanika" retail branch, on an area of 2,500 sq. meters in G-Mall
Rishon Le-Zion. Reportedly, NIS 14 million was invested. Further 2 more shops
planned for 2015, with NIS 30 million investment.
Reportedly, total revenues of the local
fashion market in 2013 reached NIS 12 billion per annum. In 2012 sales reached
NIS 11 billion. 40% of sales are in the large fashion chains, 34% in other
smaller chains, and the rest in private shops.
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.
Children's fashion market is valued at NIS 2 billion per
annum, sold in 1,600 shops (900 of which belong to branded chains, rest are
private shops).
According to the
Central Bureau of Statistics (CBS), import of Clothing and Footwear in 2014
increased by 8.3% (in NIS terms, rose by 9.5% in $ terms), summing up to NIS 7,421.6
million. This comes after in 2013 import rose by mere 0.9% from 2012, but rose
by 13% in 2012.
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.
To many players in the branch, the fierce competition,
coupled with the slow-down in local economy resulted in stagnation in sales and
drop in revenues. There have been also few collapses of veteran and big
retailers in some niches, including in the ladies fashion and children's
apparel.
Moreover, in particular for the recent period, local
businesses in general, and the fashion market in particular, sufferred a blow
from the fighting situation in Israel during July-August in the south of
Israel, causing freeze in sales.
From
RIS data, a firm that measures revenues from sales of 2,600 shops in Israel, in
2014 local consumers reduced their purchasing in the apparel branches,
witnessed in 1.5% reduction in revenues per meter in commercial centers (after
2013 ended in freeze compared to 2012).
From the CBS
National Accounts for 2014, it turns that private consumption expenditure, in
fixed prices, grew by 4% from 2013 (rose 3.3% in 2013 and 3.1% in 2012).
Per-capita expenditure in 2014 rose by 2% (after rise of 1.4% in 2013 and 1.2%
in 2012).
Consumption
expenditure by households on semi-durable goods rose in 2014 by 7.6% from 2013
(after 1.8% rise in 2013, and 7.4% in 2012), of which expenditure on Clothing
and Footwear in 2014 rose by 10.7% from 2013 (after 2.2% rise in 2013 and by
8.5% in 2012).
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.95 |
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|
1 |
Rs.98.64 |
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Euro |
1 |
Rs.69.86 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
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.