The Accent footwear chain is closing down, due to financial difficulties. Sources inform “Globes” that the company board of directors today decided to cease operations. The company told the media it would only close its stores in shopping malls, without shutting down entirely.
The Accent chain is owned by the Aquarius group (Padani-Lustig) (40%), general manager Arik Kreimerman (20%), and foreign investors, who hold the remainder.
The chain has been in business for seven years, operating dozens of stores, with a turnover of tens of millions of dollars. The company has never made a profit, losing several million shekels a year in recent years. The chain closed its flagship store in Dizengoff Center several months ago.
The decision to close the entire chain was taken as a result of the economic situation and other factors, which caused it to lose money. Sources in the sector believe that the company’s economic difficulties were due to poor results, caused by low returns and high expenses. The industry is labor intensive, with an inflexible level of expenses.
Sources also informed “Globes” that a year ago, the Hamashbir Lazarchan chain negotiated to buy the Accent chain. Hamashbir Lazarchan now plans to again consider a partnership in Accent.
Published by Israel's Business Arena on August 20, 2001