Tel Aviv Sushi Chain Ze Sushi Files for Bankruptcy Protection
Translated & summarized from Ynet by baba
Tel Aviv sushi chain Ze Sushi has filed for temporary protection from creditors, citing debts of approximately NIS 19 million. The company seeks to formulate a debt arrangement to facilitate business recovery, emphasizing that its core operations remain profitable. The financial difficulties are attributed to a combination of factors including a partner's alleged default, losses from a failed venture, and the impact of the war on the restaurant sector. The chain's two restaurants in Tel Aviv continue to operate normally, and the company aims to preserve the jobs of its over 50 employees.
The story in 6 lines · by baba
- Ze Sushi, a Tel Aviv sushi chain, has filed for bankruptcy protection with debts of approximately NIS 19 million.
- The company seeks a debt arrangement to facilitate business recovery and rehabilitation.
- Financial difficulties are attributed to a partner's alleged funding default and losses from a failed venture.
- The war's impact on the restaurant industry and rising financing costs also contributed to the crisis.
- The chain's two Tel Aviv restaurants remain operational, and over 50 jobs are at stake.
- In 2025, the group's total revenues exceeded NIS 35 million, with operating companies remaining profitable.
The popular Tel Aviv sushi chain Ze Sushi, operating in the city since 2006, has filed an urgent request with the Tel Aviv District Court for a temporary order to stay proceedings, aiming to formulate a debt arrangement as part of a recovery and rehabilitation process. The group has accumulated debts totaling approximately NIS 19 million, including a NIS 9.32 million loan secured by a mortgage on the controlling owners' residence. Both of the chain's Tel Aviv restaurants remain open and operational.
The request was submitted by three companies: Ze Sushi, Europ Terminal, and Ze Sushi Tel Aviv Group. Ze Sushi operates a well-known flagship restaurant in the Basel complex on Eshtori Ha'פרחי Street, which has been running for 20 years and holds the registered trademark ZE SUSHI until 2034. Europ Terminal manages another restaurant in the We building on Menachem Begin Road, also serving as a base for four virtual brands, Food Terminal, Vong, Ze Sushi, and Pick a Poke, marketed through the Wolt platform.
This virtual brand operation, described as a "ghost kitchen," utilizes existing infrastructure and staff to produce meals for various brands, expanding product offerings and order volume without increased overhead. The company asserts that its core restaurant operations are profitable and seeks a stay to achieve business recovery under a supervisor's guidance, preserving the jobs of over 50 employees.
According to the filing, the financial crisis stemmed from a combination of factors, including a partner's alleged failure to provide promised funding and significant losses from a failed restaurant venture. The ongoing war's impact on the restaurant industry and rising financing costs also contributed to the difficulties. Co-owners Eve Gabriel Zrouk and Inbar Zrouk have reportedly injected millions of shekels from personal funds into the companies.
The group emphasizes that the financial challenges are not indicative of business collapse, stating that operations continue normally, the brand is strong, and revenues are substantial. They believe a debt arrangement can lead to recovery and significant repayment to creditors. In 2025, the group's total revenues exceeded NIS 35 million, with both operating companies, Ze Sushi and Europ Terminal, consistently profitable. The filing highlights the critical need to utilize Wolt proceeds, noting that NIS 7.3 million in revenue from January to August 2026 came from the platform.
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