Israeli Ice Cream Company Candylida Seeks Debt Restructuring Amid NIS 15 Million Debt
Translated & summarized from Calcalist by baba
Israeli ice cream company Candylida is seeking a court-ordered stay of proceedings due to NIS 15 million in debt. The company's financial struggles stem from the termination of a key distribution agreement and significant operational costs. Candylida hopes the stay will allow it to negotiate with creditors, sell assets, and secure new financing to continue its business operations.
The story in 4 lines · by baba
- Candylida faces NIS 15 million in debt after losing a major distribution deal.
- The company is seeking a court-ordered stay of proceedings to restructure its debts.
- Key suppliers include Strauss Ice Cream and Nestle's Noga Ice Cream.
- A two-month stay is requested to negotiate with creditors and sell assets.
Candylida, a company operating a chain of ice cream stores and wholesale distribution, has encountered financial difficulties, partly due to the termination of a two-decade distribution agreement with Feldman Ice Cream following a commercial dispute. The company has accumulated debts totaling approximately NIS 15 million, with about one-third owed to suppliers including Strauss Ice Cream, Magnum Ice Cream, and Nestle's Noga Ice Cream, which distributes Ben & Jerry's.
Owned by Shimon Hazut, Candylida reported sales of around NIS 8 million from January to August, yielding a gross profit of approximately NIS 2.7 million. The company has petitioned the Beersheba District Court for a stay of proceedings to formulate a debt settlement plan. Candylida claims the cessation of its contract with Feldman Ice Cream significantly impacted its revenue and its ability to leverage its established logistical and commercial infrastructure. The distribution network was built on fixed assets and operational costs that could not be immediately reduced to match the sales decline.
In addition to operational challenges, the company faced a substantial burden of bank credit, including loans and credit lines from Mizrahi Tefahot Bank and other financiers. Interest and fees on credit used to fund operations and past obligations amounted to about NIS 370,000 in the first eight months of the year.
Candylida believes a two-month stay of proceedings will allow it to negotiate a debt settlement with creditors, advance deals to sell two properties mortgaged to Feldman Ice Cream, secure operating financing, and present a restructuring plan that could enable debt repayment and business continuity.