ACE store
Moshe Gaon
Photo: Ilan Spira
ACE files for stay of proceedings
Motion filed by DIY chain's management without consent of company's shareholders, reflecting rift between CEO, chairman and owners
The Ace AutoDepot company and its subsidiary ACE filed an urgent motion with the Petah Tikva District Court for a stay of proceedings.
Calcalist has learned that the motion was filed on part of the company's management without the consent of controlling shareholders Moshe Gaon and Shlomo Zbeda.
The motion reflects the rift between the company's management, headed by CEO David Matalon and chairman Moshe Shemesh, and the owners who have been pouring money into the company in the belief that it could make its way back to profitability.
This was the stand of the company's management in the last bondholders meeting but it appears that the owners and management, appointed just last October, have since come to loggerheads with each other.
The company's legal counselor, Attorney Guy Gissin declined to reply to Calcalist's inquiry on the matter.
Ace AutoDepot, owned by Gaon Holdings and Shlomo Zbeda, recently streamlined its operations after incurring a NIS 25 million ($6.5 million) loss in the third quarter, apparently with no effective outcome.
The controlling shareholders promised a NIS 20 million ($5.2 million) cash injection to the company (which needs more cash injections in order to survive) in November and announced a new recovery plan.
The recovery plan's opening remark was, "Focusing on profitable stores and closing several stores which led the company to losses as well as reducing unnecessary store space."
The company has shut down several stores and may yet close several more. It also plans to downsize some of the stores.
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