KFC Israel Faces Sale Amid Bankruptcy Proceedings

KFC Israel is on the verge of being sold as part of its insolvency proceedings, with several parties expressing interest in acquiring the fast-food chain. Trustees have submitted a report to the court indicating that initial inquiries have been received, prompting a request to officially solicit offers for the company or its operations. This move is being undertaken concurrently with efforts to stabilize the business.

Upon assuming their roles, the trustees immediately began working to ensure the continued operation of the chain and preserve its value for a potential sale. They have engaged with the company's management, including the CEO, operations manager, accounting department, and HR manager, to gain accurate insights into the operational and cash flow status. Immediate needs, such as securing essential supplies like chicken, flour, buns, and beverages from suppliers, are being addressed.

A significant challenge highlighted by the trustees is stabilizing the workforce. They emphasized the critical importance of building trust among the approximately 120 employees and motivating them to support the operational efforts aimed at maximizing the sale value. To this end, a Zoom meeting was recently held for all employees, management, and their representatives to provide a clear picture of the situation and offer employment certainty.

KFC Israel's request for insolvency proceedings was attributed to severe distress stemming directly from the events of October 7th and the subsequent security escalation, which critically impacted its operations. The company is represented by attorney Avitar Kremer. The Supervisor of Insolvency Proceedings is represented by attorney Mali Hagigi Leshem, and approximately 110 employees are represented by attorney Ofir Ronen. The trustees are represented by attorneys Dorit Karni, Wassiem Sibat, and Aviad Tayeb, along with accountant Amir Gad.