Unique: Probably the most highly effective household partnerships in Israel’s enterprise neighborhood is ready to interrupt up. The Nakash Brothers Group, during which brothers Avi, Joe and Rafi Nakash have been companions for the previous 50 years, is about to start the method of dissolving the partnership in Israel, “Globes” has discovered.
The transfer is anticipated to have an effect on, amongst different issues, the group’s holdings in Arkia Airways, the Orchid resort chain, and Ampa Group, which owns Eilat Port, and is quickly to carry an IPO on the Tel Aviv Inventory Trade (TASE).
The Nakash Group is held by a belief managed by Avi Nakash, with a 33% stake Olive Belief, which holds the same stake, and the Joe and Rafi Nakash trusts. The Group contains a variety of personal corporations and partnerships, which maintain the group’s foremost belongings.
The dissolution of the partnership might be a posh course of, and at this stage it’s nonetheless unclear what type it should take. The liquidation shouldn’t be supposed to use to the joint holdings overseas, and the group hopes that the liquidation might be carried out by settlement and with out the necessity for court docket intervention past procedural points.
“We’re two in opposition to one”
The background to this dramatic separation is the continued dispute between the brothers over the employment of Avi Hormaro, who serves as a senior supervisor within the Group’s corporations in Israel. Whereas Avi Nakash is main a authorized battle in opposition to him, claiming that he took thousands and thousands of shekels from the Group, Joe and Rafi Nakash don’t share the criticism of the previous CEO. Mediation between the brothers was just lately held in Miami, which was meant to finish the dispute, however it failed.
In Might 2024, Avi Nakash’s belief filed a request with the court docket to conduct a by-product lawsuit in opposition to Hormaro. Nakash claimed that Hormaro, who served for years as CEO and chairman of the board of administrators of the group’s corporations, took rights price “tens (if not a whole bunch) of thousands and thousands of shekels” from the group’s corporations. Avi Nakash additionally claimed that Hormaro carried out offers with corporations within the group with out required approvals, and acted in a battle of curiosity.
Hormaro claims that every one his actions had been carried out legally and with the approval of the Nakash brothers. His lawyer mentioned these had been “unfounded, idle claims,” and that Hormaro’s conduct was “skilled and flawless.” Joe and Rafi Nakash don’t share Avi’s claims in opposition to the veteran CEO, and one of many brothers even informed Globes, “We’re two in opposition to one. Hormaro did a beautiful job.”
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Settlement with Hormaro
In July, a settlement was signed between the Nakash Group and Hormaro, during which Hormaro would switch NIS 5 million to the Group and stay in his place till January 2025. After that, the Group would be capable to terminate his employment. Hormaro is transferring a few of his rights in firms to the group, and retaining different rights. It was additionally agreed that Ampa, the holding firm managed by the Nakash Group and Shlomi Fogel, will purchase Hormaro’s 3% stake in Ampa Israel 2016, and can switch half of the proceeds to the Nakash Group.
Regardless of the settlement, Avi Nakash requested to proceed the lawsuit and even obtained permission from Choose Michal Agmon-Gonen to extend the quantity he was claiming from just a few million to NIS 65 million. In line with him, the settlement settlement reveals, “Further rights that Hormaro took for himself in different firms, and the choice of parts within the Nakash Group to depart him with sums of cash and rights that represent a big a part of what he stole.”
Hormaro claimed that Avi Nakash is looking for to torpedo the settlement settlement regardless of realizing in regards to the negotiations to signal it. Firms within the Group he managed, together with the Yamit Lodge and the Orchid Lodge, argued in opposition to the Nakash Belief’s request that it was not a “real request geared toward inspecting the most effective pursuits of the businesses, however quite a private household dispute that the applicant presents as a authorized continuing.”
Hormaro just lately requested the court docket to dismiss the lawsuit outright.
Printed by Globes, Israel enterprise information – en.globes.co.il – on March 24, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
