Carrefour Israel Board Reverses Chairman Appointment After Just Six Weeks

Carrefour Israel's board of directors has officially rescinded the appointment of Michael Luboschitz as co-chairman, a position he held for only about six weeks. The decision was made during a board meeting where the draft prospectus for the company's upcoming IPO on the Tel Aviv Stock Exchange was approved. The valuation for the IPO is estimated between 750 million and 950 million shekels.

This dramatic reversal follows a significant management shake-up and a reported deep rift between the incoming CEO, Inbal Harson, and Luboschitz, whom she replaced as CEO approximately six weeks prior. Sources within the company indicated that the handover between Harson and Luboschitz lasted only one day due to a lack of chemistry and Harson's desire for full managerial independence. Consequently, Harson has been working directly with co-chairman Zvika Shwimmer, bypassing Luboschitz.

The initial appointment of Luboschitz as co-chairman without a board seat, which raised legal questions, was intended to maintain a balance of power. However, this arrangement collapsed when Harson refused his professional guidance. Harson, who previously managed sales for the Central Bottling Company and held senior roles at Tnuva, has also initiated broader management changes, leading to the departure of several key executives, including the VP of Trade, Yaniv Cohen, the Head of Information Systems, Yevgeny Kotkovnik, and the VP of Economics, May Shahar.

Furthermore, Harson is implementing sharp strategic shifts, including abandoning the "discount basket" initiative promoted by Economy Minister Nir Barkat. The cancellation of Luboschitz's appointment casts doubt on his future at Electra Consumer Products, with whom he recently signed a new one-year employment contract. Luboschitz is credited with leading the company's recovery, completing the rebranding of 150 branches to Carrefour, and achieving operational profitability with an EBITDA of 76 million shekels in the first half of the year.

With the company facing a decline in same-store sales, its controlling owner must now stabilize operations quickly ahead of the second draft prospectus submission in the coming weeks.