The "Sher Fitness" company owned by the fitness trainer Sher Sanda known as Sher Fitness, which operates large fitness complexes for women only, ran into debts of approximately NIS 24 million.
The company appealed to the district court in Haifa with a request to issue a stay of proceedings order as well as a request for debt settlement to its creditors.
The court granted the request and issued a stay of proceedings order, with the hearing set for March 15.
Haifa District Court Judge Bettina Tauber granted the company a temporary injunction prohibiting changes to the company's assets and rights or taking proceedings against it.
She did not recover from the corona
From the request it appears that the company ran into difficulties partly due to the corona virus.
In 2019, the company reached positive equity in the amount of approximately six million shekels and a sales turnover of approximately 28 million shekels, however, at the beginning of 2020, a number of events occurred at the same time which undermined the stability of the company and ultimately led it to submit the request to the court.
According to the claim, the activity turnover in 2021 was only about NIS 19.5 million, less than 70% of the activity turnover in 2019. The company ended the year 2021 with a loss of about NIS 1.5 million.
It was also claimed that the company carried out efficiency measures through an external company and was able to reach operational balance and profitability in all branches already at the beginning of 2022.
However, at this stage and in light of the chain of events, the company has accumulated debts of approximately NIS 24 million.
It also emerged from the request that the gym industry is one of the areas that suffered the hardest from the Corona crisis and the closures.
At the same time as the closures, in 2020, during the birth of her second son, Sanda was attacked by a violent bacteria and she was sedated and ventilated for several days.
In the application, it is claimed that the rehabilitation took many months.
In September 2021, the Omicron wave began and the Israeli government made the green note worse and set a restriction according to which only those vaccinated with a third vaccine could come and train in gyms, which prevented many customers from coming and returning to the training routine.
She did not pay rent on the property for this purpose
Last October, it was announced for the first time in Israel today that the Tanoport company, which operates in the field of purchase and rental of commercial real estate assets, filed a lawsuit in the amount of NIS 4.5 million against the Sher Fitness company.
The lawsuit then referred to non-payment of rent in the renovated commercial complex "Ad Gardan" (Ad Halum) in Be'er Tovia.
The lawsuit was filed against Minister Sanda Meti, the controlling owner of the network, and her partner Idan Meti, the manager of the network.
The lawsuit was filed through attorneys Amir Bartov and Bezalel Rodrig from the Bartov & Co. office.
The Tanoport company stated in the lawsuit that "Sher Fitness Ltd" rented 1,359 square meters in the complex until now and operated a women's studio, a body toning institute and a fitness center in the complex as of March 10, 2019.
The dispute over the payment mainly referred to the Corona period.
It is claimed that "Sher Fitness violated the lease agreement due to non-payment of the rent, and despite receiving repeated warnings until the notice to cancel the agreement - the defendants did not pay their debt."
The start of activity in this property was in March 2019. After that, the corona virus started.
The claim is that since the epidemic there has been a problem with payments, and that there were attempts to settle the matter with reduced rents, but the parties were unable to reach an agreement.
The property should be vacated on November 1.
Minister of Fitness: We will continue to work for the consolidation of the order
Attorney Lirom Sanda, representing the company, said in response: "The Honorable Court approved the company's request in its entirety for an order for a recovery procedure according to Amendment 4 (coronavirus amendment) to the Insolvency and Economic Rehabilitation Law and this is an expression of confidence in the rehabilitation operations that the company performs for its customers. We will continue To act for the consolidation of the settlement in a short time and the restoration of the damages of the corona virus."
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