Major Retailers Threaten to Close Azrieli Malls Over Business Dispute
Retailers Golf & Co. and Steimatzky are threatening to close dozens of stores in Azrieli Group malls due to a dispute over financial terms and management fees. The potential closure affects around 50 to 60 branches across 20 malls. This conflict follows a previous legal dispute and involves companies with shared ownership and management, including CEO Eyal Grinberg. The retailers are showing improved financial performance despite the ongoing disagreement.
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- Golf & Co. and Steimatzky may close 50-60 stores in 20 Azrieli malls over financial disputes.
- The dispute involves management fees and rental terms between the retailers and Azrieli Group.
- Eyal Grinberg leads both Golf & Co. and Steimatzky, which have shared ownership.
- A previous legal conflict between the parties occurred about a year ago.
- Golf & Co. reported a significant profit increase in its latest financial results.
Two major Israeli retail chains, Golf & Co. and the bookstore chain Steimatzky, are threatening to close all their branches within Azrieli Group malls due to a business dispute over financial terms and management fees. The potential closure could affect approximately 50 to 60 stores across Azrieli's 20 shopping centers nationwide.
The dispute involves Golf & Co., which owns brands like Golf, Golf Home, Golf Kids, Intima, Polgat, Kiton, and Sabon, and its affiliated bookstore chain Steimatzky. Golf & Co. operates around 350 stores in Israel, while Steimatzky runs about 140, with 13 of them located in Azrieli malls. Eyal Grinberg, the controlling shareholder and CEO of Golf & Co., also holds joint ownership of Steimatzky, creating a deep business connection between the two companies.
This is not the first conflict between the retailers and the mall operator. A year ago, a dispute arose over a Polgat store in Ayalon Mall after its lease expired, leading to legal action and ongoing tension. The current conflict has also incorporated the Sabon chain, which recently joined the Golf & Co. group following its acquisition, with reported issues regarding its previously higher rental terms.
The potential exit comes at a time when Golf & Co. is showing improved financial results. In the second quarter of 2026, the company reported a net profit of NIS 15.6 million, a significant increase from NIS 5.6 million in the same period of 2025. Sales grew moderately to NIS 228.7 million.
The business ties between Golf & Co. and Steimatzky are substantial. Steimatzky holds a 15.5% stake in Golf & Co., and Grinberg heads both companies. This interconnectedness began in 2020 when Clal Industries, the controlling shareholder of Golf, granted Steimatzky an option to purchase shares in the fashion group, which Steimatzky later exercised.