KFC chain in Israel on the verge of collapse: operating company requests to open insolvency proceedings

In depth

S.S.K. Smart Services, which operates 12 KFC branches in Israel, has filed an urgent petition with the Be'er Sheva District Court for the appointment of a temporary trustee and a stay of proceedings, according to Israel Hayom and Walla. According to Ynet, the company claims it reached this situation, among other reasons, due to the events of October 7.

According to Israel Hayom and TheMarker, the company's shareholders are Russian residents, and sanctions prevent them from injecting additional money into the company. According to TheMarker, agreements for leases at six branches have already been canceled or warning notices were received before cancellation.

According to Calcalist, the company owes about NIS 37 million to its owners. According to N12, the company employs about 100 workers and attributes the crisis to the war and to sanctions.