Meet with top Israeli leaders at the Jerusalem Post Annual Conference 2017
Kika ordered to pay employee wages
ByNADAV SHEMER
May 14, 2012 00:38
Following the court ruling, Kika Israel says it requested the freeze first and foremost to enable it to pay its employees.
Kika

Kika. (photo credit:Yoni Reif)

The cash-strapped Israeli branch of Austrian furniture giant Kika must pay some 250 employees their April wages within 72 hours, the Central District Court ruled Sunday morning.

The court extended its freeze on all legal proceedings against Kika to June 3.



Be the first to know - Join our Facebook page.



Employees turned up Thursday morning to find Kika’s Netanya store locked, with the company’s Israel operations apparently on the verge of collapse. Since opening to much fanfare in September 2011, the store has struggled to match rival IKEA’s two stores in Netanya and Rishon Lezion.

According to figures produced by Ashtrom Properties, 15 percent owner of Kika Israel, the company lost NIS 44.5 million in 2011 and NIS 13.5 million in 2012.

Following the court ruling, Kika Israel said that it requested the freeze first and foremost to enable it to pay its employees.

Over the coming days, the company added, it will reveal its financial situation to a court-appointed team with the aim of formulating a program to continue operating.

The Histadrut labor federation – which has represented Kika employees since they unionized on Thursday – welcomed the court ruling and said it would continue to fight for all of the employees’ entitlements.
Relevant to your professional network? Please share on Linkedin

Tags:
  • court
  • Share this article via
    from around the web
    Related Content
    Riot
    August 31, 2014
    Rioting resumes throughout east Jerusalem Saturday night

    By DANIEL K. EISENBUD

    Top Stories
    Israel Weather
    • 10 - 24
      Beer Sheva
      11 - 19
      Tel Aviv - Yafo
    • 11 - 21
      Jerusalem
      10 - 19
      Haifa
    • 16 - 30
      Elat
      12 - 25
      Tiberias