Popular Israeli Natural Products Chain 'Nekudat Teva' Shuts Down
The Israeli natural products chain 'Nekudat Teva' has ceased operations at all nine of its branches and filed for insolvency proceedings with the Tel Aviv District Court. The company's total debt is estimated at 14 million shekels, according to Calcalist.
'Nekudat Teva' has requested the court appoint a temporary receiver and halt current legal actions to allow time for negotiations with creditors and the preparation of a settlement agreement. All merchandise has been moved to a secured warehouse to prevent looting.
Operating since 2014, 'Nekudat Teva' specialized in natural and organic products, vitamins, and health supplements. At its peak, the company operated 11 stores and had a significant online presence. It currently employs 38 staff members.
The company cited a combination of factors for its financial difficulties, including intense competition, high operating costs, the lingering effects of the COVID-19 pandemic, and the ongoing war, which led to the conscription of several key employees for reserve duty. Co-owner Yonatan Frank, who has served approximately 200 days in reserve duty since the start of the 'Swords of Iron' war, was on reserve duty in Gaza when the company filed for court protection.
Despite the owners investing around 4.8 million shekels of personal and borrowed funds over the past two years to save the business, they decided to close the stores and seek court intervention after receiving an economic assessment before Rosh Hashanah. The chain's assets are valued at approximately 8 million shekels.
Several competitors have expressed interest in acquiring the chain, and the owners are urging the receivers to expedite negotiations to preserve the stores and jobs. The company is currently unable to pay August salaries, and 32 current and former employees are owed back payments from previous months.
A representative for the chain stated, "Despite prolonged service in an emergency situation, the financial institutions financing the group failed to provide the necessary financial support to overcome the crisis. The result is damage to dozens of employees, tens of thousands of customers, and of course, shareholders, and this is regrettable."
