By Eti Aflalo
Consumer watchdog group Public Trust warns that three furniture companies may be on the verge of bankruptcy.
In its statement, the organization mentions Brown Label Designs, sold in Rehitei India stores; Shemco, sold in Big Rihut Haifa stores; and Winon Lidor Kahati, which operates the Style Shivuk Ishi Yashir business.
As a result, Public Trust has asked credit-card companies to stop collection of future payments, and has explained to consumers what steps to take to stop payment for furniture that is not delivered.
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The furniture and kitchen appliance sector is known for widespread consumer problems. The Dun & Bradstreet business risk index for the wood and furniture sector indicated that 27 percent of businesses in that industry were in danger of financial collapse before the outbreak of hostilities in the North.
Public Trust says it has received three complaints about Big Rihut Haifa, two of which stated that the company failed to meet delivery schedules; a third person complained of a closed branch. The watchdog group found that the company’s check-cashing privileges are being limited nationwide by the Bank of Israel through December 2014.
Attorney Yaron Zumer said in response: “The company closed its doors due to financial collapse.”
Public Trust says it has received six complaints about Style Shivuk Ishi Yashir, including failure to deliver goods and to answer repeated phone calls. Consumers who visited the store were surprised to find it had closed. The watchdog says the central bank has limited its banking privileges through August 2014. No comment was available by press time.
The organization also received four complaints about Rehitei India, alleging that the company does not supply furniture that has been ordered. Public Trust discovered that several lawsuits have been lodged against the company in small claims court, and that company lawyer Doron Tischman has petitioned the court to allow voluntary liquidation.
Public Trust says temporary receiver attorney Eyal Reif announced the sale of the India inventory starting July 21 in the company’s Rishon Lezion branch. The company did not comment by press time.
