Israeli Ice Cream Distributor Candidilida Seeks Court Protection Over 15M Shekel Debt
Israeli ice cream distributor Candidilida has filed for a stay of proceedings over 15 million shekels in debt following a split with Feldman. The crisis parallels distress at Avidan Group and KFC Israel.
The Israeli ice cream chain and wholesale distributor Candidilida has filed for a two-month stay of proceedings at the Beersheba District Court after accumulating approximately 15 million shekels in debt. Owned by Shimon Hazut, the company sought court protection to restructure its liabilities and prevent imminent collapse following a severe business crisis.
According to media reports, the primary catalyst for Candidilida's financial distress was the termination of a partnership spanning roughly two decades with ice cream manufacturer Feldman. The company stated that commercial disputes and the circumstances surrounding the end of this relationship severely damaged its revenues and paralyzed its logistics and distribution infrastructure.
Approximately one-third of Candidilida's total debt is owed to major suppliers. The list of creditors includes Strauss Group, Magnum Ice Cream, and Noga Ice Creams from the Nestlé group, which also distributes the Ben & Jerry's brand in Israel. The company aims to utilize the requested two-month stay to negotiate with creditors, secure alternative financing, and advance the sale of two real estate assets mortgaged to Feldman.
This crisis is part of a broader wave of financial distress hitting Israel's food and hospitality sector. Avidan Group, which operates 11 restaurants, cafes, and bars including Tel Aviv venues like Concierge and At8, recently petitioned the Tel Aviv District Court for a stay of proceedings amid a cash flow deficit estimated at 10 million shekels. The group's establishments employ roughly 250 workers, with management emphasizing that daily operations continue normally and employee salaries remain the top priority.
Concurrently, Smart Service K&K, the corporate entity operating the KFC franchise in Israel, has entered legal proceedings with liabilities totaling about 50 million shekels. The Beersheba District Court has appointed two trustees, Adv. Amit Lederman and C.P.A. Aliza Sharon, to examine the company's financial standing and submit an initial report within fourteen days. Court filings indicate that out of the 50 million shekels in liabilities, approximately 37 million shekels consist of owner loans, alongside 9.5 million shekels in trade debts, 1.9 million shekels owed to employees, and 1.2 million shekels to tax authorities across its 12 active branches.
