Trustees Request 60 Days to Operate and Sell Israeli Fashion Chain Anot and Jump

Lawyer Yossi Benkel from Shibolet and accountant Yitzhak Idan, appointed as temporary trustees of the Israeli fashion chains Anot and Jump, submitted their report to the Tel Aviv District Court after meetings with company officials. The trustees recommend operating the business as a going concern for 60 days according to a branch operation plan to preserve the companies' economic value and reputation. They warn that an immediate halt in operations could cause rapid devaluation.

A key part of their recommendation is to promptly initiate a public sale process to invite bids for the companies or their operations, aiming to identify potential buyers and maximize returns. The trustees plan to proactively contact relevant market players, including those previously engaged with the companies about purchase possibilities. They describe the companies as having "potential."

Under the operation plan, the companies are expected to have 1.1 million shekels in cash after 60 days, balanced by similar liabilities to employees and institutions. The trustees have already closed several branches, with 37 currently open, and intend to close 3-4 more. They also plan to terminate five additional employees, reducing staff to 95, and cut shareholder-employees’ salaries by 50%.

The companies’ debts total 38.2 million shekels, with over 16 million owed to banks and 5.6 million to employees. Assets are valued at approximately 34.8 million shekels, including inventory, lease rights, fixed assets, and land leases, with property valued at 12.5 million shekels. If sold, the companies could cover most debts, potentially up to 90%, though this depends on court approval and finding buyers who recognize the companies’ value and submit attractive offers. The trustees note the challenge of time pressure on the sale process.