KFC Israel Seeks Investors Amid Financial Crisis, 120 Jobs at Risk
Translated & summarized from Cursorinfo by baba
The Israeli branch of KFC, operated by Smart Service K&K, is being sold by court order due to a 50 million shekel debt, exacerbated by the security situation after October 7, 2023. Approximately 120 employees are at risk as 12 branches seek new investors within 21 days. Administrators are negotiating with suppliers and employees to stabilize operations during the sale process.
The story in 6 lines · by baba
- KFC Israel is up for sale by court order due to a 50 million shekel debt.
- The financial crisis worsened significantly after the events of October 7, 2023.
- Around 120 employees and 12 operating branches are affected by the sale.
- Potential investors have 21 days to submit official applications for the business.
- Administrators are working to stabilize operations and negotiate with suppliers.
- The company's debt includes owner loans, creditor payments, wages, and government liabilities.
The Israeli branch of the fast-food chain KFC, operated by Smart Service K&K, is officially up for sale with the approval of the Beer Sheva District Court. The court granted an urgent request from temporary administrators, lawyer Amit Lederman and auditor Aliza Sharon, to solicit bids for the company or its assets. Potential buyers have 21 days from the invitation's publication to submit official applications.
The sale process was initiated after a court order for insolvency proceedings earlier this month. The company's financial difficulties significantly worsened following the events of October 7, 2023, and the subsequent escalation of security concerns. Currently, KFC Israel operates 12 branches and employs approximately 120 people.
The total debt of the Israeli KFC operator has reached 50 million shekels. This includes roughly 37.5 million shekels in loans from the company's owners, 9.5 million shekels owed to general creditors, 1.9 million shekels in unpaid wages, and 1.2 million shekels in liabilities to government bodies.
Despite the insolvency proceedings, the temporary administrators have already received initial interest from several entities looking to acquire the business. They are also working to stabilize ongoing operations by negotiating with key suppliers of chicken, flour, buns, and beverages to ensure uninterrupted service.
A primary focus for the administrators is maintaining the trust of the 120 employees and preserving the business's value before the sale. A Zoom conference was held with staff, management, and their legal representatives to explain the recovery plan. Lawyer Ofir Ronen represents the interests of about 110 employees in court, while the Weksler Bregman firm is handling the company's legal defense. The administrators aim to complete the sale process quickly to maximize the sale price.
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