Losses rise at furniture importer Kika

Kika Israel lost NIS 45 million in 2011, after losing NIS 13 million in 2010.

April 1, 2012 23:52
Economic outlook.

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Despite strenuously denying rumors that it was financially troubled, Ashtrom Properties Ltd., which owns 15 percent of furniture importer Kika Israel (controlled by Salomon Betito), reported Sunday that Kika Israel lost NIS 45 million in 2011, after losing NIS 13 million in 2010, and has had a “going concern” warning attached to it, questioning its future existence.

Kika opened its furniture store in Netanya last September under license from the Austrian furniture producer, generating revenue of NIS 27m. in the four months before the end of the year. Kika Israel has obligations amounting to NIS 146m. Ashtrom Properties recorded the furniture company as having zero value.

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Ashtrom Properties said it intends to continue investing in Kika Israel. But from an accounting perspective it has already recognized the deduction of the NIS 19.4m. it has invested, which is its full investment in Kika.

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