KFC Operator Seeks Emergency Approval to Buy Chicken Amid ₪50 Million Debt
Translated & summarized from Calcalist by baba
The operator of 12 KFC branches in Israel, Smart-Service Q&K, has requested emergency court approval to purchase essential food supplies amid ₪50 million in debt. The company warned of imminent inventory depletion and sought funds to continue operations. A judge has granted permission for immediate food purchases, with a hearing on a temporary trustee appointment scheduled for November 2, 2026. The company cites the October 7 events and security escalation as contributing factors to its financial distress.
The story in 6 lines · by baba
- KFC operator Smart-Service Q&K seeks emergency court approval to buy chicken due to ₪50 million debt.
- The company warned its food inventory will run out soon without immediate purchases.
- A judge has authorized the company to buy necessary food supplies to continue operations.
- A hearing on appointing a temporary trustee is scheduled for November 2, 2026.
- Smart-Service Q&K operates 12 KFC branches across Israel.
- The company attributes its financial struggles partly to the October 7 events and security escalation.
Smart-Service Q&K, the operator of 12 KFC branches in Israel, has filed an urgent request with the court to allow it to pay suppliers approximately ₪100,000 in cash for essential food supplies, including chicken. The company warned that its food inventory is expected to run out in the coming days and sought to ensure continued operations until a hearing on its request for a temporary trustee appointment, scheduled for Monday. The company emphasized that its branches are currently operating normally and that closure would cause significant damage to itself and its creditors.
According to the filing, the company has about ₪411,000 in its Discount Bank account, from which it wishes to fund the food purchases. Smart-Service clarified that these payments are solely for new purchases, not for settling past debts, and that Discount Bank is not among its creditors. The request, submitted by attorney Aviatar Kremer, was made as a precaution, as a court order restricting asset transactions only applies to non-ordinary business activities. However, the company sought explicit judicial approval for the payments in case the bank requires it.
Judge Yaakov Persky has granted the company permission to purchase enough food inventory to maintain branch operations in the coming days. The hearing for the company's request for a temporary trustee and commencement of proceedings is set for Monday, November 2, 2026, at 2:00 PM. Last Thursday, the KFC operator approached the court after accumulating debts of approximately ₪50 million. These liabilities include owner loans of about ₪37 million, ordinary debts totaling around ₪9.5 million, employee debts of approximately ₪1.9 million, and debts to authorities amounting to about ₪1.2 million.
The company attributes its cash flow difficulties to several factors, including the events of October 7 and the subsequent security escalation. Smart-Service operates 12 branches across Israel, including locations in Tel Aviv, Givatayim, Rishon Lezion, Kfar Saba, Netanya, Ashdod, Haifa (three branches), and Kiryat Ekron. This is not the first time KFC in Israel has faced financial challenges; in March 2025, another franchisee closed eight branches due to a significant drop in revenue.
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