Court grants retail chain Israel Coop stay-of-proceedings
The Jerusalem District Court has granted Israeli supermarket chain Coop Israel [parent company the Israel Cooperative Association with a stay of proceedings due to the cash flow crisis in which it finds itself, Globes reports.
The retail chain's request to the court for a stay of proceedings spoke of, "The erosion in gross profit, which typifies the retail branch and food chains in particular." The supermarket chain added that, "The crisis had escalated since 2011 due to the rise in operational costs and intensification of competition in the market, without a fall in the price of commodities, and which has led to the closure of many companies large and small in Israel's retail market."
The request for the stay-of-proceedings filed by Advs. Yigal Weinstein and Schachar Katovich of Woolfson & Weinstein & Co. law firm says that the company, "is not in danger of economic collapse," and asked the court to allow it to continue with its recovery program in which it plans, "selling branches, streamlining its workforce, selling assets worth more than its debts."
Coop Israel operates 192 branches throughout Israel including 42 in city centers and 150 stores in moshav agricultural villages.