Yavne, Israel, July 14 - G. Willi-Food International Ltd., one of Israel's largest food importers and a single-source supplier of one of the world's most extensive range of quality kosher food products, today announced that its U.S. subsidiary - WF Kosher Food Distributors Ltd. - has ceased the activities of its operations effective immediately.
WF has filed a complaint in the New York Supreme Court against the seller to WF of the operations and assets of Laish Israeli Food Products Ltd. ("Laish") for losses incurred resulting from inaccurate representations made by the seller in connection with the sale of Laish assets to WF, and from the seller's malicious interference with the U.S. operations of WF after the sale of the operations to WF.
WF also intends to file a complaint against certain Israeli vendors that provided it with products not in accordance with the agreed upon terms.
Second Quarter and First Half Fiscal 2008 Revenue
Willi Food anticipates second quarter fiscal 2008 revenues to increase approximately 41% as compared to the same period a year ago. Furthermore the Company anticipates first half fiscal 2008 revenues to increase approximately 45% as compared to the same period a year ago. The increase in revenues was primarily due to the consolidation of the financial results of Shamir Salads and the Danish dairy distributor division into Willi Food's balance sheet. Contributions from Willi Food's joint venture with the Baron Family as well as organic growth from its Gold Frost and Willi Food division in Israel also contributed to the results.
Zwi Williger, chief operating officer of Willi Food commented, "We are very pleased with our fiscal 2008 results to date. By and large, our organic growth has been strong and our acquisition strategy effective, and we have achieved significant double digit revenue growth for the first half of fiscal 2008 despite rising commodity costs. We do not expect that the closing of WF's doors will have a material effect on our existing import business into the U.S. of our other operating divisions."