KFC Israel Faces Sale Amid Financial Distress
Translated & summarized from Ynet by baba
The Israeli franchise of KFC, operated by Smart Service Q&K, is being put up for sale by court-appointed trustees due to financial distress and accumulated debts of approximately NIS 50 million. The company, which runs 12 branches and employs 120 people, cited the events of October 7th as a factor in its difficulties. The court has approved a process to solicit bids for the chain within 21 days, while trustees work to stabilize operations and retain staff.
The story in 5 lines · by baba
- KFC Israel is up for sale by court-appointed trustees due to financial distress.
- The chain has accumulated debts of approximately NIS 50 million.
- The company operates 12 branches and employs around 120 workers.
- The court has approved a 21-day period to solicit bids for the company.
- The events of October 7th were cited as a factor in the financial difficulties.
The Israeli franchise of the fast-food chain KFC, operated by Smart Service Q&K, is up for sale. Court-appointed trustees, Adv. Amit Lederman and CPA Aliza Sharon, have received approval from the Beersheba District Court to solicit bids for the company or its operations within 21 days. This move follows a court order to commence insolvency proceedings against the chain earlier this month.
KFC Israel currently operates 12 branches and employs approximately 120 workers. The company has accumulated debts totaling around NIS 50 million, including NIS 37.5 million in owner loans, NIS 9.5 million in ordinary debts, NIS 1.9 million owed to employees, and NIS 1.2 million to authorities. The company's representatives cited the events of October 7th and the subsequent security escalation as contributing factors to its financial difficulties.
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 made with the consent of the Supervisor of Insolvency Proceedings. Concurrently, the trustees are working to stabilize ongoing operations, retain employees, and maintain communication with raw material suppliers.
The trustees have been actively assessing the company's operational and financial status since their appointment, meeting with management, financial and operational staff, employee representatives, and essential suppliers. A significant focus is on rebuilding trust with the approximately 120 employees and engaging them in the process to preserve the company's value for an optimal sale. A Zoom meeting was held with all employees and management, along with their legal representatives, to discuss the situation.
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