Sources inform ''Globes'' that Lee Cooper Israel Ltd. will close all its 36 stores and lay off over 350 employees. The board of directors of parent company Concept Fashion Products Marketing Ltd., which holds the Israeli franchise of British fashion company Lee Cooper Brands Ltd., met last week and decided on the move.
Lee Cooper Israel will close all its stores, sell off inventory, settle its debts, and go out of business. Concept Marketing chairman Itzik Turgeman said in response, "I am trying to sell the business as a going concern, but we'll have to close the chain in any case. The closing will be organized, with the objective of meeting all the chain's obligations."
The sources added that Lee Cooper Israel began laying off staff on Friday; the company's export employees were let go.
The decision to close down came after unsuccessful attempts to sell the franchise. Lee Cooper Israel is burdened by its large inventory, estimated at NIS 20-30 million. The franchise did not order the summer collection.
Sources believe that the chain will close by March 2011 at the latest.
In addition to the Israeli franchise, Concept Fashion Products Marketing operates 10 stores in Romania and 14 stores in Ukraine. Its turnover this year will be around NIS 110 million after a NIS 250 million turnover in 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010