Israeli Economic Highlights: Arena Mall Revamp, Mitromics Recall and More
A weekly review of Israel's top economic news covers James Chambers' extradition case, Arena Mall's 200-million-shekel overhaul, Mitromics' massive recall and value drop, and a major supermarket acquisition.
The economic elite of Ynet brings you the most-read and impactful stories of the week, alongside a special recommendation that flew under the radar.
The Billionaire Fleeing U.S. Extradition
James "Fergie" Chambers, a Cox family heir and prominent pro-Palestinian activist in the U.S., inherited hundreds of millions of dollars and directed a significant portion of his fortune into political funding. U.S. authorities accuse him of laundering $7.5 million intended to support Hamas and involvement in protests against Elbit Systems facilities. Chambers, who defines himself as a Marxist-Leninist and previously praised the October 7 attacks, was arrested in Ibiza in July and is held in Spain pending extradition. This week, the Spanish government advanced the extradition request to the National Court, bringing him closer to facing decades in prison in the U.S. His attorneys argue it is political persecution, claiming the funds were meant for a Tunisian football club and humanitarian aid in Gaza.
Arena Mall Transforms to Face Marina
After over 20 years of struggles, real estate group Reality plans to dismantle the closed mall model at Arena Mall in Herzliya. The structure will be divided into seven independent, two-story open-air buildings facing the sea and marina, focusing on hospitality, culinary, culture, and wellness. The project, estimated at 200 million shekels, will begin in October and take two years. Opened in 2003 for $153 million, Arena struggled to attract visitors despite its exceptional location. The new plan seeks to connect commerce directly to the promenade and marina, following the opening of BIG Fashion Glilot.
Mitraniics Issues Recall Amid Plunging Value
Mitromics, from Kibbutz Yizre'el, long considered a luxury brand in pool cleaning robots, announced a recall for its Nea cleaner manufactured in China after shell cracks risked water penetration, short circuits, and fires. Priced at around 780 shekels, Nea aimed to counter cheap Chinese competition as the company moved away from its pricier Israeli-made Dolphin robots. Amid post-pandemic inventory gluts and fierce competition, Mitromics' value has plummeted by roughly 98% to around 245 million shekels, with losses reaching 34 million shekels in the first half of the year, sparking buyout talks with FIMI Opportunity Funds.
Former Shufersal Executive Acquires 11 Supermarket Branches
Daniel Verdiger, former CEO of Yesh Hasid under Shufersal, is acquiring 11 branches of City Market for roughly 35 million shekels, including inventory, with an option for another branch. Verdiger, fired a year and a half ago following disputes with the Amir brothers—owners of Shufersal—subsequently founded the 100 Ve-Ma'avar chain in Ashdod. This deal expands his new venture into a broader chain with locations in Tel Aviv, Beersheba, Kfar Saba, Rehovot, and Kiryat Ono. All acquired branches will remain closed on Saturdays. City Market owner Yossi Schwartz plans to use the funds to further expand his remaining network.
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