Mega receives stay of proceedings, workers plan strike
The Lod District Court will hold a hearing on the debt-ridden chain on Monday. Meanwhile, Mega's workers are planning a Monday strike
Employees of Israel's debt-ridden Mega retail chain announced on Sunday that they planned to strike the following day after a court bid by the company for a stay of proceedings.
According to Mega's court petition, the chain is in debt to the tune of about NIS 1.2 billion. The Mega board of directors petitioned the court for an urgent 60-day stay-of-proceedings order and the appointment of a trustee.
Employees are expected to protest in front of majority stakeholder Shraga Biran's home on Monday at 2 PM. The court will discuss Mega's stay-of-proceedings on Monday as well.
Mega is seeking a solution that will allow it to operations using its current cash reserves and stocks of products, until it can find a buyer.
The chain is about NIS 1.2 billion in debt, which is divided between suppliers (NIS 477 million), banks (NIS 494 million) and its parent company (NIS 257 million).
Mega plans on relieving its debt crisis through measures that include firing about 2,500 employees (out of a total of 3,500) and closing 55 unprofitable stores.
Keren Yaakobi, Billie Frenkel, Michal Margalit, and Alexandra Lukash contributed to this report.
