Office Depot deal done
The key to closing the deal was the new owners' agreement to pay cash immediately - a condition set by Mizrahi-Tefahot.
Rami Shavit, the controlling owner of Hamshbir 365 Holdings, is finally selling Office Depot. After months of drawn-out negotiations, he signed an agreement yesterday with Haredi investors from New York who will immediately inject NIS 30 million and receive full control of the local franchise.
The key to closing the deal was the new owners' agreement to pay cash immediately - a condition set by Mizrahi-Tefahot. The new owners will also put up an additional NIS 10 million if the company requires it.
The deal has already been approved by the parent company in the United States and Bank Mizrahi-Tefahot, which has a lien on Office Depot shares as security for the NIS 30 million it is owed.
Office Depot's suppliers will receive only 60% of what they are owed, and this will only be paid over five years. Office Depot will now close its stores on Saturdays, due to the new owners' religious beliefs.