Law Firm Services Provider Partners to Scale Down Operations Amid Financial Woes
Partners, a company offering office services to independent lawyers, is set to vacate its premium penthouse offices in Tel Aviv's Arlozorov Towers by the end of August. The company will continue operating on a reduced scale from its existing offices in the Museum Towers, pending creditor approval. This move follows a dispute with landlord Sela Capital, which has agreed to release Partners from its lease.
Partners, which serves approximately 600 self-employed lawyers, recently filed for court protection, citing external factors that led to cash flow difficulties threatening its existence. The company claimed its lease with Sela Capital was significantly above market rates and sought to exit the long-term agreement. Sela Capital countered that Partners unilaterally breached the contract by withholding rent payments.
An agreement has been reached whereby Partners will vacate the Arlozorov Towers offices, and Sela Capital will not collect rent for August 2026. Sela Capital has already secured a new tenant for September 1, who will reportedly pay a higher rate than Partners. The court has approved a recovery plan for Partners, appointing Adv. Elad Affari as the debt arrangement manager, prioritizing the company's rehabilitation.
The approved plan aims to make Partners a sustainable business, now free from the burdensome lease. The court has authorized the manager to solicit offers for the company's acquisition or merger, though the current focus is on creditor approval for the operational plan to allow continued activity. Partners' shareholders have provided NIS 180,000 as security for the plan, and agreements have been made regarding credit card receivables pledged to Bank Leumi. Personal guarantees totaling NIS 350,000 have also been provided by Partners' Chairman Adv. Dudi Zalmanovitch and shareholder Keren B2.
