Half Price CEO Sues Partners in Family Feud Over Real Estate Management

Orit Shalom Bag, CEO of the Israeli retail chain Half Price and daughter of its late founder Zaki Shalom, has filed a lawsuit revealing a severe dispute between the Shalom and Kuperli families. The conflict centers on the management of Kuperli and Shalom Investments, the real estate arm of Half Price, jointly owned by the families. The lawsuit accuses Moti Kuperli of violent behavior toward Shalom Bag, unilateral financial management, withholding information, and making significant business decisions without transparency or proper corporate governance.

Kuperli and Shalom Investments is a sister company to Half Price, holding partnerships and subsidiaries in various real estate ventures. Ownership is split roughly one-third to the Shalom family and two-thirds to the Kuperli family, divided equally between brothers Moti and Hazi Kuperli. According to the lawsuit, despite being a separate real estate entity, its financial difficulties and high leverage have impacted the retail chain due to shared resources and funding.

The dispute escalated after Zaki Shalom’s sudden illness about five years ago, when Orit Shalom Bag took over as CEO. She claims that since then, the company has been heavily leveraged with hundreds of millions of shekels in debt, partly due to mismanagement of subsidiaries and partnerships. She alleges Moti Kuperli has acted unilaterally for years without board approval, breaching the principle of joint management and causing loss of trust and harm to minority shareholders.

The lawsuit also details personal accusations, including an incident last year where Moti Kuperli allegedly threw a water bottle at Shalom Bag during a heated meeting. It further claims Kuperli pledged dozens of apartments owned by the companies to a private company he controls without partner consent. Several subsidiaries are reportedly operating at a loss with significant debts, such as Migdaley Sharona, which owes about 170 million shekels without a clear repayment plan.

Shalom Bag sought to implement recovery measures, including reducing leverage, bringing in investors, and separating the real estate business from the retail chain. However, Moti Kuperli allegedly blocked these efforts and refused to grant her signing authority over major financial decisions. The tension worsened when the Kuperli family appointed Moti Kuperli as CEO of both companies without proper board discussion or considering external candidates. The lawsuit requests court intervention to protect minority rights and separate the real estate activities from Half Price, aiming to end the partnership.

The allegations remain unproven in court. The Kuperli family’s response is pending.