Blue Square-Israel Ltd. (NYSE:BSI) today announced that the entire membership of the Secretariat of the Co-Op Blue Square Consumer Cooperative Society Ltd. (the “Co-Op”), which owns approximately 78% of the outstanding shares of the Company, resigned on August 15, 2000.
The resignations came, inter alia, after the Supreme Court had rejected a petition to prevent the Cooperative Societies Registrar from appointing a Management Committee for the Co-Op.
On August 16, 2000, the Registrar appointed a Management Committee for the Co-Op (“the Committee”). The members of the Committee include Justice (Ret.) Miriam Porat, Mr. David Brodet and Dr. Lipa Meir, Advocate. The Committee was granted the power to manage the Co-op pursuant to the regulations of the Cooperative Societies Ordinance and the Co-Op Articles of Association.
The Committee is authorized to direct the Co-Op representatives regarding their voting during the Company’s Extraordinary General Meeting scheduled for August 24, 2000.
The Company continues to operate in the ordinary course of business under the direction of its management and its Board of Directors.
At this stage, the Company is unable to determine how, if at all, the appointment will impact the Company.
On August 17, 2000, acting Chairman Benjamin D. Gaon submitted a letter of resignation to the Company’s Board of Directors. In his letter of resignation, Mr. Gaon expressed his good will toward the Company and wished future success to the Company, its management and employees.
The Company’s Board of Directors and its President & CEO expressed their deep appreciation for Mr. Gaon’s important contributions to the development and success of the Company and the Co-op group.
Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region. Blue Square currently operates 166 supermarkets under different formats, each offering varying levels of services and pricing. For more information, please refer to Blue Square’s website at www.coop.co.il.
The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of the Company, the occurrence of which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constraints, the effect of the Company’s accounting policies, as well as certain other risks and uncertainties which are detailed in the Company’s filings with the Security and Exchange Commission, particularly the prospect to its public offering in July, 1996.