Ze Sushi Group Files for Debt Recovery Plan Amid 19 Million Shekel Debt
Tel Aviv's veteran Ze Sushi restaurant group has filed for a stay of proceedings with 19 million shekels in debt, while its two locations and delivery services continue operating as usual.
The veteran sushi restaurant group Ze Sushi, operating in Tel Aviv since 2006, has submitted an urgent request to the Tel Aviv District Court for a temporary stay of proceedings to formulate a debt settlement under a rehabilitation and recovery track. This comes after the group accumulated total debts of approximately 19 million shekels. Despite the financial difficulties, the two restaurants operated by the group in Tel Aviv continue to function as usual.
The request was filed by three companies within the group: Ze Sushi, Europe Terminal, and Ze Sushi Tel Aviv Group. Out of the total debt, 9.32 million shekels is a secured debt to a lender, backed by a mortgage on the residential apartment of the group's controlling shareholders, Yves Gabriel Zarouk and Inbar Zarouk. Ze Sushi operates the group's flagship restaurant in the Basel complex on Astarit HaPrachi Street in Tel Aviv, which has been open for 20 years. The company also holds the registered trademark ZE SUSHI, valid until 2034.
Business Operations and Delivery Channels
Europe Terminal operates an additional restaurant in the WE Building at 150 Menachem Begin Road in Tel Aviv. Alongside the restaurant activity, Europe Terminal operates four virtual brands marketed on the Wolt platform: Food Terminal, Vong, Ze Sushi, and Pick a Poke. This ghost kitchen model allows the brands to offer separate menus on the platform while producing dishes in the same kitchen using existing personnel, equipment, and infrastructure.
According to the request, this model expands product variety and order volume without adding overhead costs. The filing emphasizes that the core activity of the restaurants is profitable, and the goal of the request is to secure business stability and corporate recovery under the supervision of a settlement manager, while preserving the jobs of the group's more than 50 employees.
Financial Crisis and Outlook
Represented by attorneys Moshe Turgeman and Daniel Benita from the Bar Yosef, Nawei, Turgeman, Grabovsky & Co. law firm, the group stated in the filing that the companies recently entered a severe cash flow crisis resulting from several factors. These include a partner who allegedly failed to fulfill commitments and inject promised funding, as well as significant investments in setting up and operating another restaurant that failed and caused considerable losses.
The companies are not in business collapse. Their operations continue as usual, the brand is strong, and their revenues continue to come in regularly and in substantial volumes.
In 2025, the group's aggregate revenues totaled more than 35 million shekels, and the two operating companies consistently remain profitable at the operational level. The average order volume for the companies in a full month of operation stands at 2.5 million shekels, with a significant portion of activity conducted through deliveries via Wolt.
