Court Extends Operations for Fashion Chains 'One' and 'Jump' Amidst Ongoing Sale Efforts
Translated & summarized from Calcalist by baba
A Tel Aviv court has extended the operating period for fashion retailers "One" and "Jump" as a going concern, allowing more time for trustees to find a buyer. Despite initial interest, no binding offers have been made for the financially troubled chains, which owe millions and have significantly reduced their number of branches.
The story in 5 lines · by baba
- Court extends operations for fashion chains 'One' and 'Jump'.
- Trustees are seeking a buyer and have extended the offer deadline.
- Chains owe approximately NIS 38 million and face pending claims.
- Operations are currently profitable despite financial difficulties.
- Founder's death and market conditions contributed to insolvency.
The Tel Aviv District Court has granted a request from the trustees of the fashion chains "One" (עונות) and "Jump" (ג'אמפ), extending their period of operation as a going concern. The trustees, Adv. Yosef Benkel and CPA Yitzchak Idan, submitted a report detailing their efforts to sell the companies, which included advertising an invitation for purchase offers and opening a data room for interested parties. Due to initial inquiries that have not yet matured into binding offers, the trustees announced an extension of the deadline for submitting purchase proposals until October 8, 2026.
According to the trustees' report, several parties have expressed interest in acquiring the companies or their operations following the public invitation. However, none of these inquiries have yet resulted in a binding offer. The trustees have also proactively approached businessmen and leading companies in the market who might be interested in an acquisition, but these discussions have also not yet led to a firm offer.
In light of these circumstances and to broaden the pool of potential buyers and exhaust the sale process, the trustees extended the submission deadline. The trustees have also implemented a new operational plan that includes reducing store space, closing unprofitable branches, and adjusting staffing levels to prevent value erosion and protect creditors.
Last July, "Calcalist" first reported that the two chains sought court protection due to a combined debt of approximately NIS 38 million. The chains stated in their filing that their insolvency was not due to a single event but a combination of factors, including declining revenues, shrinking profits, difficulty adapting expenses to retail changes, impaired financing, the impact of the security situation on retail operations, and the tragic loss of the founder, Yoav Shama.
At their peak, the chains operated 100 branches. Before the current proceedings, this number had been reduced to 44 branches with about 100 employees. Currently, 85 employees work for the chains, which operate 33 branches.
The trustees' report indicates that 331 debt claims against "One" totaling approximately NIS 61 million are pending review, and 34 claims against "Jump" totaling about NIS 5.5 million are also awaiting adjudication. Given that these claims, amounting to about NIS 66 million in total, have not yet been assessed, the final debt may be lower. The report also notes that the ongoing operations are currently profitable.