Food company Mickey Delicatessen collapses and cannot pay salaries

Food company Mickey Delicatessen collapses. On Thursday, a petition for receivership was filed to the Tel Aviv District Court. The request shows that the company, which has become insolvent, cannot pay salaries to its 230 employees, which amount to NIS 2 million, and that its debt amounts to NIS 46 million.

 Mickey's delicatessen are unable to meet the credit limits required by some of the secured creditors, and that within a few days they will be in a state of return and total collapse. She also states in the request for the conference that "it is unable to conduct its business, it is clearly insolvent both in balance and in flow and does not see any purpose in taking a rehabilitation process in light of ongoing losses of millions of shekels that it has accumulated in recent years."
The Mickey Delicatessen owned by the Caputile family was established in 1992, as a continuation of a family business that operated for more than 80 years. The company is engaged in the production and marketing of ready-made salads and other food products for the marketing chains. It owns two factories: a salad production and marketing plant in the Rishon Le-Zion area, owned by Mickey Salad controlling shareholders, which is mortgaged to Bank Hapoalim and Leumi; And a fish production plant in the Beit Shemesh area, which causes the company heavy losses of hundreds of thousands of shekels a month.
The request also shows that in recent years Mickey salads have had difficulty keeping up with raw material prices, regulatory changes that necessitated large investments and growing industry competition. Under these circumstances, its revenues diminished, its fortunes eroded, and it incurred heavy losses, as "the control shareholders' efforts to stabilize the company through an operational streamlining process and obtaining business advice were not helpful."
According to its financial statements, in 2017 the company posted a loss of NIS 5.4 million, in 2018 it recorded a loss of NIS 4.9 million, and this trend of losses continues in 2019 as well.