Israel’s Alon Blue Square supermarket chain near breakdown

Israel’s Alon Blue Square supermarket chain near breakdown

blueIsrael’s mega supermarket chain Alon Blue Square is close to collapse. “The coming days will be critical because if suppliers don’t show confidence in the owners and Mega’s management, it will be difficult to cope again with a situation of shortages and customers coming and being disappointed,” a senior executive at Israeli supermarket chain Mega told news reporters. The comment was made after the news that parent company Alon Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI) is again in budgetary troubles. “We are at a basic crossroads and the suppliers, proprietors and different accomplices must work to spare Mega.”

Recently, Alon Blue Square’s bondholders following requests raised by the banks that the parent organization reimburses their obligations to them. The bondholders assert that Alon Blue Square is near indebtedness. The snowball impact with the bondholders undermines the Mega general store chain, which amid the late spring came to an obligation settlement in which parent organization Alon Blue Square dedicated to support the supermarket. The real concern now is that suppliers will choose to stop conveyances to the general stores, which would realize the quick crumple of the chain. A few suppliers have as of now impeded the pace of conveyances because of apprehensions of non-installment.

Mega workers committee director Eyal Eli has sent a subtle provocation to the bondholders and the banks, “If someone thinks that they can harm Alon Blue Square and indirectly the Mega chain’s 5,000 employees and keep their hand clean on the matter is making a terrible mistake.”The previous evening on the NYSE, Alon Blue Square’s offer value fell 16.28% to $0.36, giving a business sector top of $23.74 million.

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