KFC Israel Chain Approved for Sale by Court
Translated & summarized from Calcalist by baba
The KFC restaurant chain in Israel has been approved for sale by the Be'er Sheva District Court following insolvency proceedings. The chain, which operates 12 branches and employs 120 people, owes approximately 50 million shekels. Trustees have received initial interest from potential buyers and are working to stabilize operations while soliciting bids. The company cited the events of October 7th and security escalations as contributing factors to its financial distress.
The story in 5 lines · by baba
- KFC Israel chain approved for sale by Be'er Sheva District Court.
- The chain operates 12 branches and employs 120 workers.
- KFC Israel has accumulated debts of approximately 50 million shekels.
- Trustees have received initial interest from potential buyers.
- The company cited the October 7th events as a factor in its distress.
The KFC restaurant chain in Israel, operated by Smart Service Q&K Company, is set to be sold after the District Court in Be'er Sheva approved a request by the court-appointed trustees to solicit bids for the company or its operations within 21 days. This move follows an order to commence insolvency proceedings against the chain earlier this month.
KFC Israel currently operates 12 branches and employs approximately 120 workers. The chain has accumulated debts totaling around 50 million shekels, including 37.5 million shekels in owner loans, 9.5 million shekels in ordinary debts, 1.9 million shekels owed to employees, and 1.2 million shekels to authorities.
According to the trustees' report to the court, several parties have already expressed interest in acquiring the chain. The request to expedite the sale was filed with the consent of the Supervisor of Insolvency Proceedings. The trustees are also working to stabilize ongoing operations, retain employees, and maintain communication with raw material suppliers.
The chain, represented by attorney Avitar Kremer, stated in its court filing that it encountered difficulties due to the events of October 7th and the subsequent security escalation. The trustees have been in contact with the company's management, financial and operational teams, employee representatives, and essential suppliers to assess the situation and formulate an operational plan. They emphasized the importance of building trust with the 120 employees to preserve the company's value for a successful sale.
The trustees are pursuing the sale process concurrently with stabilizing operations, aiming to secure the best possible return. The Supervisor of Insolvency Proceedings is represented by attorney Mali Hagigi Leshem, and approximately 110 employees are represented by attorney Ofir Ronen. The trustees are represented by attorneys Dorit Karni, Wassim Sebat, and Aviad Tayeb, along with accountant Amir Gad.
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