Nahum Bitan forced out as Yeinot Bitan CEO

Nahum Bitan

The appointment of former G. Willi-Food CEO Michael Luboschitz to replace him is believed to be a demand of Klirmark Capital for investing in the financially troubled supermarket chain.

Nearly four decades after founding Israeli supermarket chain Yeinot Bitan, Nahum Bitan is hiring a CEO for for the first time - outgoing G. Willi-Food CEO Michael Luboschitz. The appointment comes a few days before the date on which Yeinot Bitan hopes to sign a deal with the Klirmark Capital fund that will ease the chain's cash flow problems. The appointment is believed one of the fund's demands for the deal, along with the appointment of a board of directors for Yeinot Bitan.

Luboschitz will be charged with managing the retail empire founded by Bitan, with its 164 branches (subject to completion of reported deals), NIS 4 billion turnover, and many thousands of employees.

Luboschitz is joining Yeinot Bitan at the most difficult time in the company's history. There is no assurance that Klirmark will sign a deal for injecting the hundreds of millions of shekels that Yeinot Bitan needs to pay its debts to the Mega trustees, estimated at NIS 110 million, the banks (NIS 220 million), and suppliers (over NIS 150 million).

In order to achieve the necessary turnaround in the group, Luboschitz will have to both improve the chain's regular business and cope with the strong workers' committee at Mega, as well as Bitan himself.

Published by Globes, Israel business news - en.globes.co.il - on February 26, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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