"Rak Bssarr" restaurant chain ran into financial difficulties and debts of approximately NIS 10 million

The "Rak Bssarr" restaurant chain ran into financial difficulties and debts of approximately NIS 10 million and turned to the Haifa District Court in order to appoint a trustee and issue a freezing order. Judge Bettina Tauber granted the request and issued a temporary freeze order that will remain in effect until a different decision is made. The meaning of the order is that it is not possible to initiate or continue legal proceedings against the network. The judge also issued an order prohibiting operations on the companies' assets. A hearing was scheduled for October 26.
At its peak, the chain employed 150 people, and today it employs about 80 people in its branches in Ramat Hay'il, Haifa, and Rishon Lezion. The purpose of going to court is to act to revive the network and to reach an agreement with its creditors. The restaurants currently operate as a bouncer and the owners of the chain wish to continue operating it and not sell it.
The "Only Meat" chain was founded over a decade ago, in 2008, by kibbutznik and farmer Dan Brand (81) and his son Lior Brand, who currently manages the chain. As part of the request submitted by the chain through attorneys Michel Hazan, Elinoy Derai and Sharon Rosengart from the Saraglik-Hazan office, it is claimed that "this request for an order to initiate proceedings is submitted in view of the financial turmoil that the companies have fallen into, which occurred mainly due to the Corona crisis that has afflicted the State of Israel. From a revenue turnover of 26.5 million shekels in 2019, the revenue turnover in 2020 dropped to 15.5 million shekels, and in addition to that, a branch that opened on the streets at a cost of millions of shekels was closed after three weeks immediately with the outbreak of the corona virus. As a result of the corona crisis and a drastic decrease in the volume of sales turnover in 2020, the state did not create a compensation mechanism for the companies in the scope of the turnover of the companies. However, it should be emphasized that these are old companies and leaders in their field, with profitable and healthy activity in essence."
The request shows that the shareholders tried to stop the snowball that was created while injecting equity capital of about NIS 2.5 million by themselves and by relatives. "It should be noted that the shareholders do not have any assets that can be redeemed and all the funds they had in a provident fund or pension were redeemed for the ongoing operation of the chain, including debt payments. As of today, the owners do not have any real estate/movable assets/vehicles that can be redeemed." It was claimed as part of the application. The owners of the companies did not draw their salaries for a long period of time and made sure to pour money into the companies from their private capital. Today, even when the companies have high incomes, it is difficult to impossible to rehabilitate without the assistance of the court when a sword is waved over the necks of the companies in view of the debts and obligations to various suppliers and creditors which brought with them the closures during the Corona period".
The chain also states that the appeal to court is for the purpose of providing the chain with a "time-out" for a fixed period, during which the chain will carry out a process of stabilization and efficiency through the appointed trustees who will result in maximum repayment of their debts. "It should be emphasized that these are veteran companies and leaders in their field. The companies' activity is essentially profitable and the companies have significant prospects for recovery," it was claimed.