Is Electra Consumer Products (TASE: ECP) planning the sale of Carrefour Israel branches? Carrefour's workers committee is preparing for the possibility that was raised at a management committee meeting last month, which was attended by representatives of the employees and Electra Consumer Products CEO Zvika Shwimmer.
Last Thursday, after Carrefour CEO Uri Kilstein resigned and Shwimmer became Carrefour Israel CEO and Michael Luboschitz was appointed Deputy CEO, workers committee chairman Eyal Eli sent the management an email warning against unilateral actions.
He wrote, "We warn in advance not to surprise us with any step or plan that would harm employees, the collective agreement and the closing of branches and their sale. We will not allow the sale of even one branch and we will not allow harm to employees. In any case where we find any unilateral action, we will act in response."
The workers' committee of Mega - Yenot Bitan Wines, which changed its name to Carrefour Israel, stressed, "The workers' organization has been working hand in hand with management for about 18 months and contributed a lot to the success of the Carrefour chain, including NIS 27 million in streamlining."
Eli added, "My actions in the last 18 months have been for one aim: the successful launch of the Carrefour chain in Israel. But this does not mean that I will allow unilateral actions that would harm employees."
The reorganization of the supermarket chain had a negative impact on the company's financial results with losses of NIS 138 million in the first half of the year, of which NIS 63 million was in the second quarter. The company has already announced that it will list on the stock market or hold an IPO and according to estimates, is also about to bring in a partner after not exercising the option to purchase Nahum Bitan's remaining shares.
The third quarter financial results that will be published next month are also expected to show an improvement after the increase in sales in the branches in recent months, compared to the sales of the Yenot Bitan chain the previous year. Since the beginning of the war sales have risen even more sharply. According to Storenext data, the entire food market grew by 42% in the first week of the war, and by 11% in the second week. The growth in Carrefour sales rose 83% in the first week, and 37% in the second week.
Carrefour Israel said, "Carrefour is the fastest growing chain in Israel with an 84% increase in sales and its financial condition is solid. We continue working as planned and in full cooperation with the workers' committee as well."
Published by Globes, Israel business news - en.globes.co.il - on October 30, 2023.
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