Hazi Hinam CEO Resigns Amid Ownership Dispute
Translated & summarized from Globes by baba
Orit Shalom-Bag has resigned as CEO of the Israeli retail chain Hazi Hinam after 26 years, amid a sharp dispute with co-owner Moti Kuperli. The resignation is the most significant development in a legal battle over alleged mismanagement and prejudice of her rights. Shalom-Bag retains a significant shareholding, and the conflict may lead to the dissolution of the partnership. Attempts to attract investors and address the company's substantial debt are ongoing.
The story in 5 lines · by baba
- Hazi Hinam CEO Orit Shalom-Bag resigned after 26 years due to a dispute with co-owner Moti Kuperli.
- Shalom-Bag filed a lawsuit alleging prejudice and misconduct by Kuperli three months prior to her resignation.
- The conflict may lead to the dissolution of the partnership between the Shalom and Kuperli families.
- Hazi Hinam has significant debt, with loans totaling approximately 828 million shekels.
- Investors, including Harel Wiesel and Zvi Villiger, had previously explored acquiring a stake in the company.
Orit Shalom-Bag, CEO of the Israeli retail chain Hazi Hinam, has resigned after 26 years with the company. Her departure stems from a severe dispute with her co-owner, Moti Kuperli. This resignation marks the most significant development in the ongoing conflict between the families who founded Hazi Hinam nearly four decades ago.
Shalom-Bag's resignation does not end the business partnership or the dispute. She still holds about a third of the company's shares, and the current ownership structure is unlikely to persist after the legal proceedings. The legal battle, initially concerning allegations of her rights being prejudiced in the company's management, may now serve as a mechanism to dissolve the decades-long partnership.
Shalom-Bag, daughter of the late co-founder Zachi Shalom, had been a key figure in managing Hazi Hinam, which operates eight branches in central Israel and has substantial real estate holdings. Three months prior to her resignation, she filed a lawsuit against Kuperli and other shareholders, alleging unilateral actions by Kuperli, heated arguments, and even physical violence. The Kuperli family vehemently denies these claims, calling them baseless and exaggerated.
In recent months, attempts were made to attract investors to Hazi Hinam, with figures like Harel Wiesel of Fox Group and Zvi Villiger of Willi-Food reportedly exploring initial interest. These discussions considered investors acquiring 20%-50% of the company at a valuation of 3.2-3.5 billion shekels, including debt. The company also previously attempted a bond issuance that did not materialize.
The dispute also involves significant debt, with Hazi Hinam's loans totaling approximately 828 million shekels at the end of the first quarter, and the families' combined business loans at about 1.2 billion shekels. Annual financing costs for Hazi Hinam are reportedly around 120 million shekels. The Kuperli family maintains that the company's operations are stable and professionally managed. The separation, if it occurs, will also involve jointly held real estate assets through the Kuperli and Shalom Investments company.
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