Court ordered the dissolution of the fashion company Forever 21 in Israel

The enormous debts of one of the most well-known fashion chains operating in Israel are revealed: The Tel Aviv District Court ordered the dissolution of the fashion company Forever 21, which has operated the well-known fashion chain in Israel since 2011. The judge ruled that there was no reasonable chance of the company’s economic rehabilitation.
Judge Hagai Brenner appointed Adv. Yonat Leibowitz-Meir from the firm of Fiada Leibowitz-Meir to the company's trustee in order to act to realize the assets of the Oblivion Fund and distribute them to creditors.
The court's decision was given following a liquidation petition filed last July by parent company Forever 21 Global. The company claimed, through attorney Israel Bachar, from Pearl Cohen's firm, that the company's debts to it amount to NIS 40 million and that over the years of its activity in Israel to Forever 21, a capital deficit of NIS 197 million was created.
The liquidation petition states that the chain in Israel closed its branches during 2018, but only in July 2020 was a liquidation petition filed against it in light of its losses and the parent company's desire that the company receive tax refunds on losses accumulated to the chain in Israel.
As part of the application, it was argued that the chain in Israel owes related companies, including the parent company, a total of more than NIS 200 million.
During the years of operation in Israel, the chain operated 8 branches in Israel - in the Gindi Fashion Mall in Tel Aviv, in the Golden Mall in Rishon Lezion, in the Kryon Mall in Haifa, in the Mimla Mall in Jerusalem, the Ayalon Mall in Ramat Gan, Ashdod and Beer Sheva. At its peak, the company employed 278 workers in Israel.