A court has issued a stay of proceedings against Office Depot in Israel on Friday, 21 Cheshvan 5774. The court order resulted after a motion of liquidation was filed against Office Depot along with ML and the Jump fashion chains, all owned by Avi Malka. The latter two are legally owned by Matim Ltd, also owned by Malka.

The three companies employ 1,000 people but Malka owes the banks 81 million NIS.

District Court Justice Avi Shilo on erev Shabbos ordered Office Depot branches closed for the time being as suppliers are heading to stores in an effort to take back merchandise to minimize their losses.

Globe’s adds “ML had a turnover of 112.4 million NIS in 2012. It had a gross profit margin of 61.9%, and an operating profit of 5.8 million NIS, or 5.2% of sales. Matim Li had high financing expenses (4.75 million NIS), and a pretax profit of just 1.1 million NIS. Jump had 62.3 million NIS revenue in 2012 and an operating profit of 2.98 million NIS (4.7% of sales). Here too, because of its high financing expenses (2.1 million NIS), its pretax profit was just 869,000 NIS.”

Malka remains confident that agreement will be reached with creditors.

(YWN – Israel Desk, Jerusalem)