Clothing chains “Onot” and “Jump” applied for protection from creditors

Clothing chains Onot and Jump filed a petition with the Tel Aviv District Court to obtain a court order for protection from creditors.

The fashion retail companies, operating through a nationwide network of stores and a joint management and operating structure, are asking for a temporary trustee to be appointed and temporary operations approved for a period of 60 days with the goal of finding a buyer or investor to keep them as a “going concern.”

According to the joint petition, “we are talking about a living and operating business that, through the recovery process, will be able to return to normal business operations while maintaining the jobs of approximately 100 employees (60 employees were laid off).”

It follows from the petition that the companies found themselves in a difficult situation due to a combination of several factors, including the consequences of the War of Iron Swords and Operation Roar of the Lion, as well as an increase in the discount rate and increased costs of logistics. In addition, in the midst of attempts to recover, the founder of the Onot network, Yoav Shem, died.

In the past, the group planned to buy both chains by the Golf company, but in the end the deal did not take place.

Currently, the companies’ total assets (including real estate with an estimated value of about 12.5 million shekels) amount to about 34 million shekels, while their debts are estimated at about 37.61 million shekels.