Kika customers owe surcharge to pick up merchandise they paid for, judge rules
Liquidation sale ends with 10,000 customers buying NIS 4.6m in merchandise.
Customers of Netanya's Kika housewares and furniture store, which just concluded a clearance sale, will be able to collect merchandise they paid for in full but have not yet received only if they pay an additional 50% surcharge.
The policy was set on Sunday by Petah Tikva District Court Judge Ilan Shiloh.
The judge said that despite the harm to those customers who have already made payment, allowing them to get their merchandise on any other basis would constitute an improper preference among creditors. From a legal standpoint, customers are creditors of Kika Israel, a franchise of an Austrian company.
At a hearing on Sunday, several Kika customers appeared before the judge, saying they had made partial or full payment for merchandise they had not received. Ron Bar-Nir, the store's court-appointed liquidator, told the court that many other customers who had made payments on merchandise they had not received had contacted him.
Calanit Hermelin-Vager, the official receiver in the case, told the court that legally, the banks had a lien on all undelivered merchandise. She agreed there was no choice but to require customers to make the additional 50% payment on merchandise before they could pick it up.
Bar-Nir said that during clearance sale, some 10,000 customers had bought NIS 4.6 million in merchandise, and there was nothing left to sell.