Chocolate Maker Nitzanei Hadar’s Business to Be Sold to Maimon Spice Group After Financial Distress

The Beersheba District Court recently approved Maimon Group, one of Israel’s leading spice companies, to acquire the business of chocolate producer Nitzanei Hadar, which turned to the court in January after accumulating debt of about NIS 13 million.

Last month, Judge Yaakov Persky accepted the position of the trustees appointed to Nitzanei Hadar, attorney Gil Afraati and CPA Amir Gad, as well as the position of the insolvency commissioner, and approved the sale to Maimon Group. The court favored Maimon Group’s bid of about NIS 2 million for the business, even though the shareholders of the chocolate maker, Nitzanei Hadar Group, submitted a higher counteroffer at the last minute. However, the trustees addressed the proposal and explained why it was “vague” and should be rejected immediately. The insolvency commissioner also opposed the offer, detailing why it was unclear and did not comply with the court’s instructions. The judge decided to approve the sale to Maimon Group and noted that “we are dealing with a situation in which the business is being steadily eroded so long as there is no decision on the question of the sale. No explanation was given for why the shareholders of Nitzanei Hadar Ltd. waited and delayed submitting their offer until the ‘90th minute.’ The offer as presented was submitted in violation of the court’s instructions, in the absence of a bank guarantee.”

In the petition it filed with the court in January, before trustees were appointed, Nitzanei Hadar said that “the chocolate products manufactured by the company are among products whose consumption is inherently tied to periods of stability and routine, and they also symbolize feelings of joy and well-being. The events of October 7, when the public in Israel was in a state of prolonged national mourning, led to a significant decline in demand for such products, which directly affected the company’s sales volume and deepened the harm to its revenues.” It also noted the more than 150% increase in the price of chocolate, its main raw material, as a factor that harmed its operations.