Hasmashbir Lazarchan, which is under a stay of proceedings, will probably sell its Zara Israel franchiseby the end of the week to Generique, owned by Africa-Israel Investments and its Canadian partners in equal shares.
The price for the franchise is estimated at NIS 60-70 million.
Generique, which sells lingerie through Gottex Models and Christina America Inc. Canada, will also buy the Pull and Bear Israel franchise from Hamashbir, and will buy the Bershka fashion label for young women. Spanish fashion company Inditex (Madrid:ITX) owns the Zara, Pull and Bear, Bershka and other brands. Following the agreement with Hamashbir, Generique is expected to open negotiations with Inditex on the franchise terms.
Zara Israel has 11 stores and 500 employees. Turnover in the first half of 2002 was reportedly NIS 85 million.
Africa-Israel owns 50% of Generic. The restis owned by a group of Canadian textile and fashion magnates. Generique acquired Christina America Inc. Canada last year for C$43 million.
Christina produces swimwear and lingerie mostly for the North American market. The company posted a profit of NIS 25.8 million in the first half of 2002.
Africa-Israel recently exercised its option to sell to Generic its full ownership in Gottex for $7.5 million.
Hamashbir employees have petitioned the Tel Aviv District Court to order the chain’s trustees to block the sale of the Zara and Pull and Bear franchises separately from the rest of Hamashbir’s businesses, and to offer all of the company to potential buyers as a single unit.
Published by Globes [online] - www.globes.co.il - on November 20, 2002