In Israel, a store chain went bankrupt: the owner was in miluim for too long

The natural products store chain "Nekudat Teva" has closed all 9 branches and filed for bankruptcy in court. The company's debts reached 14 million shekels. The owners invested 4.8 million shekels of their own funds but could not save the business. One of the shareholders, Yonatan Frank, has served about 200 days in reserve duty since the start of the war.

The Israeli natural products store chain "Nekudat Teva" has closed all 9 branches across the country and applied to the Tel Aviv District Court to begin insolvency proceedings. The company's debts reached 14 million shekels. The chain had been operating since 2014, at its peak had 11 stores, and also engaged in online sales. Currently, 38 people work for the company. One of the two shareholders and directors of the chain, Yonatan Frank, has been serving almost continuously in reserve duty since the start of the "Iron Swords" war, spending about 200 days in miluim. At the time of the court application, he was again serving in the Gaza Strip. The second shareholder is Bar Kaplan. The owners invested about 4.8 million shekels of their own funds and through loans, but after receiving an economic assessment on the eve of Rosh Hashanah, they decided to immediately close the stores. The chain cannot pay employees their August salaries, and 32 workers have not received part of their payments for previous months. The chain's lawyer, Omer Nirhod, stated that financial problems began during the coronavirus pandemic and worsened due to the emergency situation and the director's prolonged reserve duty. He noted that credit institutions did not provide necessary support. The company is asking for temporary managers to be appointed to negotiate with potential buyers in order to preserve the stores and jobs.