Carrefour Israel Reverses Chairman Appointment After Six Weeks

Carrefour Israel's board of directors has rescinded the appointment of Michael Luboshitz as co-chairman, just six weeks after he was named to the position. Luboshitz had served as the company's CEO for the past three years. The board's decision came during a meeting where they also approved a draft prospectus for the company's upcoming stock offering.

The reversal follows reports of a rift between Carrefour CEO Inbal Harsson and Luboshitz. Luboshitz's appointment as co-chairman was initially approved by the board of Global Retail, which holds a 49.5% stake in Carrefour, controlled by Electra Consumer Products. However, a significant condition was added: Luboshitz would not be appointed as a director, despite company law requiring the chairman to be a board member. This arrangement was reportedly made based on legal advice and aimed to maintain the balance of power between Carrefour's partners, who have been involved in a business dispute.

This dispute previously led to arbitration, with a ruling requiring Electra to pay founder Nachum Biton compensation, the amount of which is expected to be determined next month. In June, then-chairman Zvika Shwimmer had indicated Luboshitz would assist him and lead board meetings in his absence, handling business development and overseeing company performance in coordination with the CEO.

However, Harsson, who joined the company last month, reportedly did not want Luboshitz's assistance. Following a single day of overlap, communication between them ceased. Luboshitz's employment status with Electra Consumer Products is now uncertain, despite a new one-year contract signed before his intended chairman appointment, with unchanged terms.

Carrefour is expected to submit a revised prospectus within two weeks in preparation for its stock market debut.