Nature Point Chain Closes All Stores Amid NIS 14 Million Debt

The Israeli natural products retail chain, Nature Point, has shut down all nine of its stores across the country due to accumulating debts of approximately NIS 14 million. The company, which has operated for about 12 years and specialized in natural products, dietary supplements, vitamins, and organic food, filed an urgent request with the Tel Aviv District Court for proceedings to open, the appointment of a receiver, and a stay of proceedings to formulate and approve a creditors' arrangement.

The chain, which employed 38 people, began facing difficulties in 2014. Its struggles were exacerbated by the prolonged reserve duty of one of its two shareholders, Yonatan Frank, who has been in active reserve service for nearly three years, including extensive time in Gaza since the start of the war. The company's filing attributes its downfall to Frank's extended absence, the mobilization of other key personnel, the general security and economic situation in Israel, intense market competition, and fixed operating costs that did not decrease in line with declining revenues.

Despite efforts by shareholders Frank and Bar Kaplan to stabilize the business, including injecting approximately NIS 4.8 million of personal funds and loans over the past two years, a recent economic assessment led to the decision to close the stores immediately before Rosh Hashanah. The company's assets are estimated at NIS 8 million, with proposed repayment percentages varying for different creditor classes: 100% for secured creditors, 62% for personal guarantee creditors, and 35% for ordinary unsecured creditors.

In the week prior to the closure, following market rumors of the chain's financial distress, several potential buyers reportedly approached the company. The filing also notes that the company is unable to pay August salaries to its 38 employees, and some 32 current and former employees have not been paid for previous months' work. The company's legal representative stated that a swift appointment of a trustee could maximize returns for creditors and potentially allow for the continuation of store operations and employment for many of the staff.