Ze Sushi Restaurant Chain Files for Debt Restructuring Amid NIS 19 Million Debt
Translated & summarized from Ice by baba
The Israeli restaurant group Ze Sushi has filed for a debt settlement with the court, citing debts of approximately NIS 19 million. The company, which operates two restaurants in Tel Aviv and four virtual brands, seeks to restructure its finances and continue operations. Owners attribute the crisis to funding issues, a failed investment, war impacts, and high financing costs, while emphasizing that operational revenue remains strong. The court is being asked to oversee a debt arrangement to preserve the business and its more than 50 employees' jobs.
The story in 5 lines · by baba
- Ze Sushi restaurant group is seeking court protection from creditors due to NIS 19 million in debt.
- The company operates two physical restaurants and four virtual brands in Tel Aviv.
- Owners cite a partner's funding failure, a failed investment, war, and financing costs for the crisis.
- The group's 2025 revenues exceeded NIS 35 million, with significant reliance on Wolt deliveries.
- Ze Sushi aims to reach a debt settlement to continue operations and retain over 50 jobs.
The veteran Israeli restaurant group Ze Sushi, known for its flagship location in Tel Aviv's Basel complex, has filed a request with the court for a stay of proceedings to arrange a debt settlement. The group is reportedly facing debts totaling approximately NIS 19 million. The petition was submitted by three companies within the group, which aim to restructure their operations and reach agreements with creditors without ceasing restaurant activities at this time. Ze Sushi has been operating in Tel Aviv since 2006 and currently runs two restaurants: the original branch on Esther HaMalka Street in the Basel complex and another in the WE Building on Menachem Begin Road. Both establishments continue to operate normally despite the financial difficulties.
Of the total debt, about NIS 9.32 million is secured debt owed to a lender, for which the primary residence of the owners, Eve Gabriel and Inbar Zeruk, has been pledged. In addition to its physical restaurants, the group operates four virtual brands through the delivery platform Wolt: Food Terminal, Vong, Ze Sushi, and Pick a Poke. These brands offer distinct menus but share a common kitchen, equipment, and staff, a model that reportedly allows for expanded offerings and delivery services without significant increases in fixed operational costs.
The owners attribute the crisis to several factors, including a partner who allegedly failed to provide committed funding, a failed investment in another restaurant, the impact of the war, and heavy financing costs. They assert that they have personally injected millions of shekels to support the companies. According to data presented to the court, the group's revenues exceeded NIS 35 million in 2025, with the two restaurant operating companies showing operational profitability. However, a substantial portion of the business relies on Wolt, which accounted for 71% of Ze Sushi's 2025 revenue (approximately NIS 10.3 million) and about NIS 7.3 million in the first eight months of 2026.
The group claims the primary issue is cash flow, not a collapse of business operations. While employee salaries were paid in full through September 2026, the companies have outstanding debts for pension and severance fund contributions. Ze Sushi is now seeking court supervision to finalize a debt arrangement, continue operating its restaurants, and preserve the jobs of its over 50 employees. This situation follows a recent report of the home goods and food chain Spaces, which also faced financial collapse with an estimated NIS 55 million in debt and was ordered by the court to liquidate.
