Miki tahini
Miki tahiniCredit: Miki Delicacies

The famous company Miki Delicacies (Ma'adanei Miki), which sells prepares salads, fish, and other food products, is closing its doors. The company was founded in 1992 as a continuation of a renowned family business that began in 1939.

The company has suffered heavy losses in recent years, accrued heavy debts and is unable to pay them back, according to a report by Calcalist, an Israel financial daily.

With the company's consent, its creditors, Banks Leumi, Poalim, and Agud, filed a petition on Thursday in the Tel Aviv District Court to be appointed the company's Offical Receivers.

The banks wrote in the request that the company informed them that they are unable to pay their employees' upcoming salaries, amounting to NIS 1.9 million as well as other debts in the amount of NIS 46 million.

The company employs 230 workers at its two factories, one in Rishon L'Tzion for salads, and another one in Beit Shemesh for fish.

The banks wrote to the court that "as was stated by the company, in recent years it has had difficulty meeting the increase in raw material prices, regulatory changes that required large investments and increasing industry competition. Under these circumstances, its income was reduced, its capital decreased and it incurred heavy losses. The efforts of the controlling shareholders to stabilize the company through an operational streamlining process and obtaining business advice did not improve matters. According to its audited financial statements, the company recorded a loss of NIS 5,443 million in 2017, in 2018 the company recorded a loss of about NIS 4,929 million, and this trend of losses also continues in 2019."

The company also blamed an incident of Listeria bacteria being found in the company's products, which "led to a long period of lost production time, massive loss of raw materials, and significant delay in customer payments, and more."