Attorney Yossi Benkel Appointed Temporary Trustee for Struggling Israeli Fashion Chains

Attorney Yossi Benkel, a senior partner at the Shibolet law firm, has been appointed as the temporary trustee for the Israeli fashion retail chains Onot and Jump. He will serve alongside CPA Yitzhak Idan from the accounting and consulting firm Y. Idan & Co. The appointment follows an urgent petition filed last Thursday at the Tel Aviv District Court requesting the opening of economic rehabilitation proceedings and a stay of proceedings due to debts totaling 38.2 million shekels.

Onot and Jump operate 37 stores nationwide after a significant reduction from 100 locations. The companies requested a 60-day freeze on legal actions against them, approval to continue operations during this period, and the appointment of a trustee to help find a buyer or investor to sustain their business and generate revenue.

The petition, submitted by attorneys Amit Lederman, Dorit Karni, and Wasim Sibbat from the law firm Amar, Reiter, Zhan, Shokhtovitch & Co., cited severe business and cash flow difficulties caused by both internal and external factors. Specifically, the companies' operations were negatively impacted by the "Iron Swords" war and the "With a Lion" military operation, which disrupted store activity and sales volumes. These circumstances led to diminished profitability, increased cash flow pressure, and impaired the companies' ability to meet their financial obligations.

The legal move aims to stabilize the chains and secure their future through restructuring or sale, reflecting the broader challenges faced by retail businesses amid regional instability.