Moti Kuperly Exposed as Key Power Behind Half Free Retail Chain Amid Legal Dispute
Moti Kuperly, a prominent figure in Israeli retail and co-founder of the discount chain Half Free, has remained largely private for over 30 years. Alongside his late partner Zaki Shalom, Kuperly built the business from a market stall into a multi-billion shekel enterprise without public interviews or stock offerings. However, a recent lawsuit filed by Shalom's widow, Mazal Shalom, and daughter, Orit Shalom-Bag, has revealed internal conflicts and financial troubles within the company.
The lawsuit, submitted last week to the Tel Aviv District Court, accuses Kuperly of minority shareholder oppression and unilateral management contrary to corporate governance norms. It details a deteriorating relationship between the families, highlighted by a contentious board meeting last month featuring sharp exchanges and references to the company’s massive debt of approximately 1.28 billion shekels. The annual financing cost of this debt is estimated at 120 million shekels.
Kuperly, in his early sixties and residing in Kiryat Ono, holds two-thirds of Half Free’s shares with his family, while the Shalom family owns the remainder. The partnership dates back to the 1980s, evolving from a fruit and vegetable stall to a chain with eight large stores and significant real estate holdings in the Tel Aviv metropolitan area. The families also jointly own a real estate development company, Kuperly-Shalom, and a construction firm, Migdaley Sharons.
Following Zaki Shalom’s death in August 2023, tensions escalated. Orit Shalom-Bag criticized Kuperly’s appointment as CEO, questioning his responsibility for the company’s debt. Kuperly responded by attributing part of the debt to the Shalom family. The lawsuit also accuses Kuperly of aggressive behavior, including an incident where he allegedly threw a bottle at Shalom-Bag. Despite opposition from the Shalom side, Kuperly’s appointment was approved by a majority of the Kuperly family members on the board.
Meanwhile, the Shalom family is seeking to bring in investors valuing the company at 3.2 to 3.5 billion shekels, with interest from fashion tycoon Harel Weizel and food company owner Tzvika Wiliger. Attempts to restructure or reduce leverage, including a potential public offering facilitated by investment bank Value Base, were reportedly blocked by Kuperly. The Kuperly family denies the allegations, calling the lawsuit baseless and affirming their commitment to professional management and legal defense.
This dispute exposes the complex dynamics behind one of Israel’s leading retail chains, highlighting significant financial challenges and a bitter family conflict that could impact the company’s future.
