Nov. 30, 2003
JERUSALEM—Domino's Pizza's Israeli franchise, which went into receivership last week, will be put up for sale based on a company value of some NIS $4 million (U.S. $800,000), company sources said Sunday.
According to the Jerusalem Post, Domino's Pizza Israel said that a number of foodservice companies have expressed an interest in buying the franchise, but they would not say which.
Domino's Pizza Intl., the report said, wanted the company's activities to continue in Israel and said that it was willing to help the new owners. Both the receivers and Domino's spokesman expressed optimism that the business would continue to operate.
For now, it's business as usual. None of the 600 employees have been laid off and none of the 24 outlets have been closed.
The bankruptcy court gave receivers two weeks to submit a new management plan for the troubled franchise, and it's expected the plan will be delivered this week.
Domino's Pizza Israel owes NIS 16.5 million (U.S. $3.3 million) to Bank Hapoalim and some NIS 30 million (U.S. $6 million) to various other groups, including its employees, suppliers and Israel's Income Tax Authority.
According to Globes Online, in June, Dominos Pizza Israel lost NIS 3.8 million (U.S. $760,000) on NIS 19 million (U.S. $3.8 million) in sales in the first half of the year, compared with a loss of NIS 1.4 million (U.S. $280,000) on NIS 26.5 million (U.S. $5.2 million) in sales in the first half of last year.
See related story, Bank threatening to close 24 Domino's Pizza stores in Israel.