KFC Israel Seeks Court Approval for Fast-Track Sale Amid 50M Debt
KFC Israel's court-appointed trustees have requested approval from the Beersheba District Court to launch a 21-day fast-track sale process. The restaurant chain faces 50 million shekels in debt following operational pressures.
KFC Israel is heading toward a fast-track sale under court supervision after its appointed trustees submitted an urgent request to the Beersheba District Court. The chain, operated by Smart Service K&K, entered insolvency proceedings earlier this month and has accumulated debts totaling approximately 50 million shekels.
The trustees, attorney Amit Lederman and CPA Aliza Sharon, requested authorization to publish a call for bids to acquire the company or its operations within 21 days. According to the court filing, several potential buyers have already expressed preliminary interest in acquiring the fast-food chain, which currently operates 12 branches and employs around 120 workers.
Debt Breakdown and Operational Stabilization
The company's total liabilities of 50 million shekels comprise about 37.5 million shekels in owner loans, 9.5 million shekels in regular debts, 1.9 million shekels owed to employees, and 1.2 million shekels in debts to authorities. Management attributed the severe financial distress to the aftermath of the October 7 events and the subsequent security escalations.
Simultaneously, the trustees are working to stabilize ongoing operations, maintain communication with essential suppliers of ingredients such as chicken and flour, and secure the workforce. A Zoom meeting was held with all employees and management to build trust and ensure business continuity ahead of the sale process.
