KFC Israel Chain Faces Sale After Court Approval
Translated & summarized from Vesty by baba
A court has approved the sale of the KFC fast-food chain in Israel, which owes approximately 50 million shekels. Temporary administrators have been appointed and are seeking bids for the business, with several interested parties already identified. The chain, operating 12 branches and employing 120 people, is facing supply shortages and financial distress attributed to the recent security escalation.
The story in 6 lines · by baba
- A court has authorized the sale of the KFC fast-food chain in Israel due to significant debt.
- The chain, operated by Smart Service, owes approximately 50 million shekels to creditors and employees.
- Temporary administrators have been appointed and are seeking bids for the business within 21 days.
- Several potential buyers have already expressed interest in acquiring the KFC franchise.
- The company's financial troubles are linked to the events of October 7 and the security escalation.
- The chain currently operates 12 branches and employs around 120 workers.
A court has authorized the sale of the KFC fast-food chain in Israel, according to a November 9 report by Calcalist. Temporary administrators Amit Laderman and Aliza Sharon filed an urgent motion with the Beersheba District Court, requesting permission to solicit bids for the company or its business within 21 days of publication. The chain, operated by Smart Service, has accumulated debts of approximately 50 million shekels. The owners had previously sought creditor protection on October 29. The network currently comprises 12 branches and employs around 120 workers. The company owes 1.9 million shekels to employees and 1.2 million shekels to state authorities. The administrators informed the court that several potential buyers have already expressed interest. They are working to stabilize operations, retain staff, and maintain communication with suppliers. Negotiations have begun with company leadership and key personnel to develop a recovery plan. Discussions with employee representatives and major suppliers are also underway to understand the business's needs, including crucial supplies like chicken, flour, buns, and beverages. The administrators emphasized the importance of building trust with the 120 employees to ensure the success of the recovery plan and achieve the best possible sale conditions. They believe initiating the sale process concurrently with operational stabilization is crucial. The chain's financial difficulties are attributed to the events of October 7, the security escalation, and other factors, as stated by lawyer Evitar Kramer, representing the chain. The chain is reportedly running low on chicken supplies.
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