Hamashbir's share price may have fallen by 57% this year as share prices reeled almost across the board. Yet the department store chain owned by Rami Shavit has no intentions of scaling back despite widespread predictions of economic slowdown.
If anything it plans to jack up growth by launching the Springfield fashion line in Israel, at an investment of NIS 25 million says Springfield CEO Asaf Ben-Dov, which includes setting up designated Springfield stores around the country.
This week it opened its flagship 220-square meter Springfield store in Dizengoff Center, and another of the same size in Ra'anana. By year-end Hamashbir, which has an exclusive import agreement in place, means to have nine operational Springfield outlets in Israel, management says. What about the company's liabilities to bondholders?
"I am really not worried about defaulting on our bonds. We have money in hand," Shavit declares, adding that Hamashbir bought back 6 million bonds. When Hamashbir publishes its third-quarter figures next month, it will be presenting double-digit growth, Shavit adds.
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