Restaurant Group Seeks Protection From Creditors With $3.7 Million Debt
Translated & summarized from Globes by baba
The Avidan restaurant group, operating seven venues and employing 250 people, has filed for a 45-day stay of proceedings in Tel Aviv due to approximately 13.9 million shekels in debt. The company cites challenges from the pandemic, the recent war, and an unsuccessful chef restaurant that lost 2.5 million shekels. A credit card processor's decision to withhold over 600,000 shekels has exacerbated the cash flow crisis, preventing essential payments. The group proposes a debt settlement that would see creditors recover only 10-20% of their claims, while aiming to continue operations and preserve jobs.
The story in 6 lines · by baba
- Avidan restaurant group seeks 45-day protection from creditors due to 13.9 million shekel debt.
- The group operates seven bars and restaurants in Tel Aviv and central Israel.
- An unsuccessful chef restaurant reportedly caused 2.5 million shekels in losses.
- A credit card processor's withholding of funds has triggered the urgent filing.
- The proposed settlement offers creditors only 10-20% repayment.
- The group aims to preserve 250 jobs and continue operations.
The Avidan restaurant and nightlife group, owned by brothers Idan, Raz, and Mor Avidan, has filed an urgent request with the Tel Aviv District Court for a temporary 45-day stay of proceedings. The aim is to formulate a debt settlement with its creditors. The group operates seven bars and restaurants in Tel Aviv and central Israel, employing approximately 250 people, and has accumulated debts totaling about 13.9 million shekels (approximately $3.7 million USD).
The group is also seeking to shield the three brothers from personal collection proceedings stemming from personal guarantees they provided for the company's debts. Among the establishments run by the group are Concierge in Dizengoff Square, Tel Aviv, Simfoni and YONO in Kiryat Ono, Reception and Signature in Givatayim, Harmony in Ness Ziona, and Melody in Drorim Mall.
According to the filing, the debts include roughly 11.3 million shekels to creditors holding personal guarantees from the brothers, 1.42 million shekels in preferential debts to employees and authorities, and about 1 million shekels in secured debts. These figures do not include approximately 750,000 shekels in unpaid October salaries or other potential debts.
The brothers attribute their financial crisis to a series of challenges, including the COVID-19 pandemic, the "Swords of Iron" war impacting tourism, and rounds of conflict with Iran. They note that evening and nightlife venues were particularly hard-hit, as they could not be adapted for delivery services. A significant factor was also an unsuccessful business expansion: a chef's restaurant opened in August 2025 in Tel Aviv, in partnership with Chef Tomer Agai, incurred cumulative losses of about 2.5 million shekels after struggling post-war and the chef's departure.
An investment deal in April 2025 with Blues Brothers company, which invested 4.5 million shekels for a 15% stake, also strained cash flow with a commitment to monthly profit distributions, later reduced. The immediate trigger for the filing was Max It Finances, a credit card processor and financier, announcing it would continue to withhold over 600,000 shekels owed to the group's companies, preventing payments for salaries, rent, and suppliers.
The proposed settlement suggests creditors could face an 80% write-off. The group aims to continue operating its seven venues and repay about 4 million shekels from future profits over several years. Preferential creditors, including employees and authorities, would receive full repayment within three years. Holders of personal guarantees would get 20% of their debt, up to a total of 2.5 million shekels, while unsecured creditors would receive only 10%. Secured creditors would be repaid according to collateral value.
The group emphasizes that some of its restaurants remain profitable, with Simfoni in Kiryat Ono reporting a 1.27 million shekel profit in 2025, and the seven active companies collectively showing a 682,000 shekel profit that year. The brothers argue that the core issue is a cash flow problem due to debt structure and past losses, and that a settlement would preserve jobs for 250 employees, unlike liquidation which would harm creditors and workers. They are requesting the appointment of a settlement manager to oversee the process and avoid business closures.