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Stock Market & Financial Investment News

News Breaks
June 20, 2011
09:00 EDTBSIAlon Holdings Blue Square falls 4.5%
Alon Holdings Blue Square is down 4.5%, or 40c, to $8.43
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July 1, 2015
13:50 EDTBSIAlon Blue Square 'concealed' financial status of Mega retail chain, Globes says
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June 21, 2015
12:48 EDTBSIMega Retail reaches labor agreement, sees cutting 1000 jobs, closing 32 branches
Alon Blue Square Israel announced that its subsidiary, Mega Retail, has agreed to terms with its employee labor union and the General Federation of Labor in Israel regarding a new collective bargaining labor agreement. Mega Retail will close 32 branches and reorganize its chain of supply and distributions centers, including the closing of a distribution center and termination of employment of approximately 1,000 employees. The labor agreement will include a reduction in salary by unionized employees of approximately NIS35M per year effective from April 1, and various other salary components and employment benefits will be cancelled in full or in part. The salaries of non-unionized employees will also be reduced. Management will also reduce headcount at its corporate headquarters at its discretion. The labor agreement is effective as of April 1. In exchange for these concessions, Mega Retail will agree to issue 33% of its share capital to a newly formed holding company to be established and owned by Mega Retail's labor union for the benefit of active employees. The newly formed holding company will be entitled to appoint one-third of Mega Retail's directors who are not external directors, and in any event no fewer than two directors, one of whom will be the chairman of Mega Retail's labor union and the second a professional expert who will be entitled to participate on all board of directors' committees deemed appropriate. All interested party transactions will require approval of the professional expert in addition to audit committee approval. In addition, until Mega Retail realizes profits, it will not distribute bonuses to its management without obtaining approval of its compensation committee and the professional expert. During the first five years of the union agreement, Alon will extend Mega Retail a credit line of up to NIS120M to be used to assist Mega Retail with peak temporary liquidity needs within each month. In addition, Alon will extend loans to Mega Retail in amount of up to NIS100M.

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