Specialty breads and café chain Lehem Erez today petitioned the Petah Tikva District Court for a stay of proceedings and to keep the company as a going concern.
The company owes NIS 12 million, including more than NIS 5 million to Bank Hapoalim (TASE: POLI), Bank Leumi (TASE: LUMI), and NIS 6 million to suppliers. The company believes that many of its recent checks will bounce because of lack of funds.
A "Globes" inquiry found that employees were not paid their July salaries, and that their jobs are in jeopardy. The chain has 175 employees, 90 of whom are employed by franchisees.
Lehem Erez was founded in 1996 by chef Erez Komorovsky. It currently has 16 branches, in the greater Tel Aviv area, 13 of which are franchisees. At its peak, the chain had 27 branches and a turnover of NIS 40 million. The branches in Jerusalem and Rehovot were closed in the past four months.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010
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