Israeli supermarket chain's Mega management plans to close its You discount chain in the coming days and by the end of the month at the latest, sources inform "Globes." The chain is also close to requesting a stay-of-proceedings and hope to sell other branches in the You chain to Victory.
You's employees have already been instructed to begin packing consumer products in branches and send them to Mega Ba'Ir branches in efforts to overcome the shortage of products in that chain. You employees have also been told to reduce orders from suppliers to the minimum because the stores are set to close.
Mega is preparing to close 22 You stores, while 26 other You and Tzarchania branches will be put up for sale. In total 1,200 employees will lose their jobs with dismissal notices to be sent out in the coming few days. All employees with less than 20 years seniority will be laid off with immediate effect. Thos employees in branches that are acquired may be able to find work with the new owners.
Mega hopes to pay suppliers NIS 70-100 million tomorrow in order to ensure the continued supply of goods to its outlets.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2015
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