Fashion chain H&M to open stores in Israel

STOCKHOLM Dec 9 (Reuters) - Swedish fashion retailer Hennes & Mauritz (HMb.ST) said on Tuesday it had entered into a franchise agreement with Match Retail Ltd to open stores in Israel. The company said in a statement the first H&M store in the country was planned to open in 2010. H&M said Match Retail Ltd was a privately owned company founded by the Horesh family for the exclusive purpose of handling H&M in Israel.

"There has been a great interest in H&M from the Israeli market for quite some time and we believe that our business concept will suit the Israeli market well," H&M Chief Executive Rolf Eriksen said in the statement.

"Through this co-operation we will gain access to our franchise partner's solid franchise experience and business network on the Israeli market." (Editing by David Holmes)