Violence Threatens Major Investment Deal Between Bank Leumi and Japanika Restaurant Chain

A recent wave of violent attacks targeting branches of the Japanika Asian restaurant chain, owned by businessman Barak Abramov, has cast serious doubt over a significant investment deal with Bank Leumi. The incidents, which include grenade throws and shootings at Japanika locations, are believed to be linked to organized crime conflicts and have raised concerns about the safety and stability of the chain.

The controversy centers on a landmark transaction in which Leumi Partners, the investment arm of Bank Leumi, acquired a 20% stake in Japanika for 200 million shekels, valuing the company at one billion shekels. This deal, which had already been officially closed, was intended to boost the restaurant group's growth and serve as a financial endorsement. However, the recent violence has put the partnership under intense scrutiny.

Inside Leumi Partners, there is growing regret and confusion about the decision to proceed with the investment. The deal was strongly pushed by the new CEO, Victor Vakrat, despite warnings from advisors about the risks involved. A source familiar with the matter told N12 that the bank's team is now "holding their heads, not understanding what they got into," emphasizing that Japanika and Abramov represent a different and more complex business mentality than other known groups.

Market insiders have expressed surprise that such a sensitive deal passed the bank's rigorous due diligence process without raising red flags. With the deal already closed, any attempt to reverse it would likely involve complicated legal and financial challenges. Bank Leumi and Leumi Partners have declined to comment on the situation.

Industry experts suggest that given the escalating criminal threats and the damage to Japanika's brand and operations, Bank Leumi might seek to withdraw from the partnership despite the difficulties. The full extent of the damage caused by the ongoing violence remains unclear, but the situation continues to evolve rapidly.