Sources inform ''Globes'' that the Israeli franchise of the Imaginarium toy chain is up for sale. Franchisee B. Gaon Holdings Ltd. (TASE: GAON) is seeking a buyer. The Spanish-based premium toy retailer came to Israel three years ago.
Imaginarium Israel is run by Yoav Gaon, the younger son of the late Benny Gaon. He brought the toy retailer to Israel as his first pet project. The first store opened on the third floor of Tel Aviv's Dizengoff Center. From the outset, there were those who commented that the location was poor, despite the presence of Toy'R'Us on the mall's basement floor. Imaginarium currently has nine stores in Israel: four in Tel Aviv, two in Haifa, and one each in Rishon LeZion, Petah Tikva, and Kfar Saba.
Imaginarium Israel reportedly has a turnover of NIS 20 million. According to Gaon Holdings' financial report, Imaginarium was due to have ten stores in Israel this year. The franchise is for five years, with an option to extend for five more, subject to meeting the terms of the contract.
Yoav Gaon said in response, "In view of the great enthusiasm for the brand in Israel, we have been contacted by several retailers who know the brand. We're reviewing the offers, and when there is something to report, we'll announce it."
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011