The veteran women's fashion chains Onot and Jump filed an urgent application last week for the issuance of an order to open insolvency proceedings under a rehabilitation track and a stay of proceedings to the Tel Aviv–Jaffa District Court. The application, filed through attorneys Amit Lederman, Dorit Karni and Wasim Sibat, reveals that the companies fell into severe insolvency with a total debt burden estimated at approximately NIS 38.2 million, against assets with an estimated value of approximately NIS 32.5 million.

The appeal to the court comes just a few months after the severe tragedy that befell the family and the local fashion industry on February 16, 2026, when the group's founder and the driving spirit behind it, Yoav Shema, ended his life against the backdrop of heavy financial pressures and the deepening crisis in the chain.

In the application, the companies (Onot Model Ltd. and New Jumpno Retail Ltd.) describe a severe combination of internal and external factors that led to the collapse. Among other things, the effects of the Swords of Iron war are noted, alongside the the Twelve-Day War and Operation Lion's Roar, which severely damaged shopper traffic in malls and sales volumes. To this were added the rising interest rate in the economy, the strengthening of online commerce and competition from international chains.

Following the distress, the chains were forced to rely on the sale of inventory from previous seasons at low profitability, since they did not have the cash flow to release new collections from customs. The crisis also led to the layoff of 60 employees in recent times, and currently the chain employs about 100 workers. The deployment of stores, which at its peak stood at over 100 branches and last year at 63 branches, was reduced to 44 stores on the eve of filing the application, and is expected to drop to only 33 branches under the temporary operation plan.

The breakdown of debts shows that the companies owe approximately NIS 16.2 million to secured creditors: Bank Leumi and Bank Hapoalim. Furthermore, there is a debt of approximately NIS 1.03 million to the authorities (VAT, income tax and National Insurance), debts of NIS 5.6 million to employees (including components of wages, vacations and severance pay completions which according to the companies are mostly covered by the National Insurance Institute), and debts of approximately NIS 15.3 million to general creditors, including foreign and local suppliers.

As part of the urgent application, and to prevent the abandonment of employees, Bank Hapoalim and Bank Leumi gave their consent to provide immediate interim financing of NIS 650,000 for the purpose of paying salary advances to employees for the month of June 2026, as an amount that will be defined as procedure expenses and paid with priority.

The companies are now requesting the court to order a temporary operation for 60 days, during which the appointed trustee will attempt to locate an investor or buyer who will save the activity as a going concern. According to the operation plan submitted, the short operation is defined as balanced and is even expected to yield receipts of approximately NIS 5.26 million and a cash surplus of approximately NIS 500,000.

The financial difficulties of the group accompanied it for a long time, and during 2025 the company's owner and its late founder Yoav Shema tried to find a broad structural solution for the chains. In November 2025, a non-binding memorandum of understanding was even signed with the public Golf Group, which considered purchasing the full share capital of Onot and Jump. Golf placed a purchase offer estimated at approximately NIS 30 million and began an extensive due diligence process, but ultimately the contacts did not mature into a binding deal and the chains were left without financial backing.