ACE Depot to fire 100, close stores

Move part of a recovery effort by the struggling retailer; Ace’s currently liabilities total NIS 329m.

ACE 311 R (photo credit: Shannon Stapleton )
ACE 311 R
(photo credit: Shannon Stapleton )
Ace Auto Depot Ltd. will likely fire 100 of its 1,350 employees and close loss-making stores as part of a recovery effort by the struggling retailer, a person familiar with the matter told Globes Wednesday.
Ace currently operates 36 ACE do-it-yourself stores, one Hyper Rosenfeld store and 18 Ace Auto Depot stores, 11 of which operate as part of Ace DIY stores.
Ace is already in talks to transfer its Ra’anana store to independent supermarket chain Kol-Bo Kimat Hinam Ltd. It apparently also wants to close its stores in Rishon Lezion and Ma’alot. The Rishon Lezion store is on land owned by Shufersal Ltd., which may hinder a transfer to the supermarket chain. On the other hand, the Rishon Lezion and Ma’alot stores are small, which should not affect Ace’s turnover.
Ace lost NIS 25 million in the third quarter and NIS 40m. from January through September, after losing NIS 62m. in 2010. Third-quarter revenue fell 7.5 percent from the corresponding quarter last year to NIS 204m.
Ace’s currently liabilities total NIS 329m., mostly owed to suppliers and service providers, and it has NIS 47m. in cash and investments. Its shareholders’ equity deficit is NIS 18.3m.. Its controlling shareholders, B. Gaon Holdings Ltd. and Shlomo Zbeda, will give it a NIS 20m. owners loan in equal shares. The company has also reached a settlement with the banks in exchange for its recovery plan.