Israeli hospitality chain Selina (Nasdaq: SLNA) cofounders CEO Rafael Museri and chief growth officer Daniel Rudasevski have stepped down from their management positions, according to a report to the TASE by strategic partner Hagag Group (HGG). Hagag Group does not know of any executive appointments or directors replacing them.
Earlier this week Gabbay Properties and Development (TASE: GBPD) reported that Selina Israel had ceased all activities in Israel.
Hagag reported that as a consequence of the resignation of the cofounders, there is no management structure at its Israeli subsidiary and operations are managed in a way that allows routine activities.
Selina operations accommodation around the world through subsidiaries, including Selina Israel. In July the company entered insolvency and receivers were appointed who sold a major part of the company's global activities to Singapore company Collective Hospitality - not including the Selina brand, which will be sold separately.
Hagag Group, controlled by the Hagag brothers Tsahi and Ido, formed a collaboration with Selina several years ago, which in the first half of 2024 cost it NIS 15 million in losses, while it remains exposed to about NIS 100 million in losses for the joint activity. In its financial report Hagag Group said it is examining the possibility of taking over most of Selina Israel's projects.
Agreement on principle with partner
Now Hagag has notified the TASE that it has reached an agreement in principle with a partner to operate the Selina site at Beit Magen in Tel Aviv. The parties will operate the site, with most of the initial revenue used to pay back existing debt, including interest.
On the Almog site by the Dead Sea, Hagag has agreed with the owner of the property for its entry into Selina's shoes to operate the site and the cancellation of Selina's previous debts on the lease. Here too initial profits will be used to repay existing debt.
At the Adama Hotel in Mitzpe Ramon, Hagag is negotiating with the owner and is exploring the possibility of operating the site by a partner. If they reach an agreement, the first profits will be used to repay the loan, and if not - the company is considering going to court for a stay of proceedings. Hagag has also reported on developments regarding other sites.
Published by Globes, Israel business news - en.globes.co.il - on September 17, 2024.
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