400 chains refused to open without compensation from the authorities

Retail chains refused to reopen in Israel after the quarantine without receiving compensation from the authorities.

In Israel, about 400 retail chains refused to reopen after the quarantine was lifted without compensation from the authorities. Among the companies that signed the agreement are international brands H&M, Lee Cooper, and Timberland, as well as local retailers and representatives of the catering market.  

The companies are demanding support measures similar to those received by small and medium-sized businesses in the country. Retailers are demanding 5% revenue compensation if revenue falls by 25-50% and 10% compensation if more than half of the turnover is lost. 

Also, the companies that signed the agreement do not expect to allocate 10,000 shekels (about 2 850 USD) for each returned employee, writes Mignews.com. Other requirements include bank guarantees for government loans of up to 50 percent, the removal of restrictions on unpaid vacations, and the abolition of VAT on purchases abroad for up to $75. 

Earlier it was reported that owners of retail chains sent a letter to Israeli Prime Minister Benjamin Netanyahu asking him to support the business as follows: “We are afraid that the worst is yet to come and we will sink even deeper into the swamp where we are stuck. Any store that opens can’t count on more than 50% turnover compared to what it was before the crisis”. 

Want to share your company’s latest updates, store openings, or partnerships?

• Submit your press release or retail news to Malls.com and reach thousands of retail professionals worldwide.