Israeli Fashion Chains Onot and Jump Face Bankruptcy Amid Market Challenges and Founder’s Tragic Death
Onot and Jump, two Israeli fashion chains specializing in plus-size clothing, have filed for bankruptcy with debts totaling approximately 38 million shekels. The companies, once family-run businesses that grew to annual revenues nearing 100 million shekels, struggled due to a complex merger, fierce competition, a shift to online sales, high operating costs, and the impact of regional conflicts. The situation worsened following the tragic death of founder Yoav Shama in early 2026.
The crisis escalated in July 2025 when Onot and Jump requested a 60-day court-approved trusteeship to stabilize operations. Trustees Yossi Benkel and accountant Yitzhak Idan were appointed to manage the company, aiming to maintain business continuity while seeking a buyer. Several firms have expressed interest, but the sale process remains challenging due to the need to manage inventory, multiple branches, and employees.
Founded in 1981 by Yoav and Gila Shama, Onot began as a small family operation in Ramat Gan and grew by targeting plus-size women with fashionable clothing, a niche largely ignored by competitors. The company expanded to nearly 30 stores by 2006 and later acquired Jump in 2014, a brand that had faced multiple ownership changes and financial difficulties. The merger intended to consolidate market share but resulted in overlapping stores competing against each other, leading to closures and financial strain.
The companies’ revenues declined from 91.6 million shekels in 2022 to an estimated 76 million shekels in 2025. The wars in the region, rising interest rates, and increased costs for shipping and rent further squeezed cash flow, preventing the launch of new collections and forcing sales of older inventory at low margins. Attempts to sell the business to the Golf Group in late 2025 failed after due diligence.
The broader plus-size fashion market in Israel faces structural challenges, including the need for larger inventories and diverse sizing, which require significant investment. Smaller brands like HEROIC highlight the demand but also the risks involved. The Israeli apparel market is highly competitive, with major groups dominating and online sales accounting for about 30% of purchases, intensifying price pressures.
The trustees believe that immediate closure would damage the brand’s value and are working to sell Onot and Jump as a going concern, though further store closures and staff reductions are expected. The Shama and Yifat families declined to comment on the situation. This case underscores the difficulties faced by family-run fashion businesses in Israel’s evolving retail landscape.
