Office Depot Israel Franchise Closed by Court Order

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Office Depot Israel Franchise Closed by Court Order
By Niall Hunt

Israeli press are reporting that the Office Depot franchise in the country has been forced to close by a court ruling.

Accordingto the Haaretz newspaper, the Lod District Court ordered Office Depot's 31 stores to close. The ruling comes eight months after the Israel franchise was sold to brothers Avi and Miran Malka.

Trustees – Office Depot's US parent and creditor Mizrahi-Tefahot Bank – sought the ruling on Friday, claiming that the Israel franchise had issued a letter saying it could not meet its current debt.

The Haaretz paper said: "Avi and Miran Malka purchased Office Depot in February in insolvency proceedings for NIS 42 million ($11.9 million), which was to be paid in 17 installments through the use of post-dated checks. The trustees claim, however, that the buyers have repeatedly sought to defer payments. According to the trustees, on October 8, Avi Malka's company notified them of cash-flow problems and asked for a delay of seven business days in making the NIS 1.8 million (£510,000) payment for the month."

Avi Malka said in an interview to Haaretz's sister publication TheMarker that he did not expect to fight efforts to sell the franchise to another buyer.

Office Depot Israel Franchise Closed by Court Order
By Niall Hunt

Israeli press are reporting that the Office Depot franchise in the country has been forced to close by a court ruling.

Accordingto the Haaretz newspaper, the Lod District Court ordered Office Depot's 31 stores to close. The ruling comes eight months after the Israel franchise was sold to brothers Avi and Miran Malka.

Trustees – Office Depot's US parent and creditor Mizrahi-Tefahot Bank – sought the ruling on Friday, claiming that the Israel franchise had issued a letter saying it could not meet its current debt.

The Haaretz paper said: "Avi and Miran Malka purchased Office Depot in February in insolvency proceedings for NIS 42 million ($11.9 million), which was to be paid in 17 installments through the use of post-dated checks. The trustees claim, however, that the buyers have repeatedly sought to defer payments. According to the trustees, on October 8, Avi Malka's company notified them of cash-flow problems and asked for a delay of seven business days in making the NIS 1.8 million (£510,000) payment for the month."

Avi Malka said in an interview to Haaretz's sister publication TheMarker that he did not expect to fight efforts to sell the franchise to another buyer.

[Author]

November 14, 2013 at 11:51 AM