Honigman

Honigman was an Israeli fashion company and retail group best known for women's apparel and for its related children's and youth-fashion businesses. Its origins reached back to a small children's clothing shop opened in 1947, while the Honigman brothers, Yaakov and Micha, established the corporate chain in 1978. Over time, the group developed a portfolio consisting principally of the women's Honigman chain, Honigman Kids for children's clothing, and TNT, a younger-oriented fashion brand. Honigman Kids stores also sold the Virus sub-brand. At its height, the group was among Israel's larger clothing retailers. The three principal brands were distributed through approximately 150 stores across Israel and employed more than 1,000 people before the 2018 insolvency proceedings. The business model depended heavily on physical retail, branded store networks, seasonal collections and shopping-centre traffic. Its product range included women's clothing, children's apparel, teenage fashion and related accessories. The group was therefore exposed to both the competitive pressures of fast fashion and the structural changes affecting Israeli retail, including online purchasing, overseas e-commerce and changing consumer expectations. Honigman faced growing financial and operational pressure in the late 2010s. An attempt to reduce its store footprint during 2017 was complicated by lease obligations, while observers described the retail proposition as increasingly dated and less competitive. Micha Honigman sold real estate in southern Tel Aviv and used the proceeds to support the company. The owners also reportedly pledged their private home as security during efforts to keep the group operating. Yaakov Honigman attributed part of the problem to what he regarded as an unfair tax advantage for overseas online purchases, including parcels below the applicable VAT threshold. In February 2018, Honigman sought court protection from creditors and reported debts of approximately NIS 234 million. The filing included about NIS 128 million owed to banks and approximately NIS 13 million in employee obligations. The proceeding marked the beginning of the group's breakup. Trustees sought approval to sell stores and children's inventory, and in April 2018 the Tel Aviv District Court approved a reduced sale of 38 stores and related assets to Avni-Shoham Ofna, the operator of the KIWI children's chain, for approximately NIS 6.25 million. A building owned privately by the Honigman brothers was also approved for sale for about NIS 20.3 million. The women's Honigman chain did not find a buyer and was permanently wound down. Honigman Kids survived under separate ownership after its acquisition by Avni-Shoham Ofna, associated with KIWI. The TNT youth brand was sold separately to a franchisee, but subsequently experienced further financial difficulties and entered another stay of proceedings. Thus, although the Honigman name continued in children's retail after the original group's liquidation, the integrated Honigman fashion company ceased to operate as a unified business.

Honigman's commercial roots lay in a children's clothing shop opened in 1947. The Honigman brothers, Yaakov and Micha, formalized and expanded the business in 1978, building a retail group around the Honigman women's label and later adding dedicated children's and youth concepts. Honigman Kids served the children's market, while Virus was offered as a sub-brand within Honigman Kids stores. TNT addressed teenage and young-adult fashion. The group grew into a significant Israeli clothing retailer with approximately 150 locations at the time of its financial collapse. Its scale came from a multi-brand store network rather than from international expansion, and the business remained focused on Israel. The portfolio enabled Honigman to cover several age segments, but it also created a large fixed-cost base involving store leases, employees, inventory and seasonal merchandise. During the late 2010s, Israeli apparel retailers faced intensified competition from online shopping and overseas purchases. Honigman attempted to reduce its physical footprint in 2017, but lease commitments made store closures or transfers difficult. The owners used personal and real-estate resources to support the company. The group's difficulties were also discussed in terms of an aging retail proposition and the tax treatment of certain low-value overseas parcels, which Yaakov Honigman argued placed domestic retailers at a disadvantage. In early 2018, the company sought a stay of proceedings from the courts. It reported liabilities of approximately NIS 234 million, including substantial bank debt and employee claims. A management change occurred shortly before the filing, with Kobi Moiseh replaced as chief executive by former CEO Micha Ronen. Court-appointed trustees then explored asset sales and a restructuring of the store network. The first proposed transaction covered 56 stores and children's inventory, but the court ultimately approved a revised sale involving 38 stores for approximately NIS 6.25 million. The buyer was Avni-Shoham Ofna, associated with the KIWI children's clothing chain. The court also approved the sale of a Tel Aviv property owned by the Honigman brothers. Trustees were asked to examine a significant discrepancy between the reported and reassessed value of the company's inventory. The integrated group was effectively dissolved. The Honigman women's chain closed permanently, while Honigman Kids moved to separate ownership and continued trading. TNT was sold independently to a franchisee, which attempted to improve its finances by closing loss-making stores and leaving some major malls, but the brand later faced another insolvency proceeding. Honigman's corporate history therefore illustrates both the expansion of Israeli specialty fashion retail and the vulnerability of a lease-heavy physical-store model during the shift toward digital and cross-border commerce.

1. 2018Court protection and restructuring

   Honigman entered a stay of proceedings with reported debts of approximately NIS 234 million.

   Source
2. 2018Honigman Kids assets sold to KIWI operator

   A revised court-approved transaction transferred 38 stores and children's retail assets to Avni-Shoham Ofna for approximately NIS 6.25 million.

   Source
3. 2018Women's chain closes

   The flagship women's business was wound down after no buyer was found.

   Source
4. 2017Store-reduction efforts fail to resolve pressure

   The group attempted to offload stores but faced difficulty exiting leases amid worsening retail conditions.

   Source
5. 2011TNT winter advertising dispute

   Consumer authorities challenged a TNT campaign featuring Jesus Luz and Irina Denisova on grounds concerning sexualized imagery and the apparent age of one model.

   Source
6. 1978Honigman brothers establish the chain

   Yaakov and Micha Honigman established the chain that developed into the broader Honigman fashion group.

   Source
7. 1947Children's clothing shop opens

   The business traces its origins to a small children's clothing store established in Israel.

   Source

Israeli multi-brand fashion retailer spanning women's, children's and teenage apparel, with a predominantly physical-store distribution model.

• HonigmanWomen's fashion

  The core Honigman label focused on women's fashion clothing and was distributed through the group's principal women's retail chain. It represented the historic flagship business, but the chain was permanently closed during the 2018 liquidation after no purchaser was found.

• Honigman KidsChildren's fashion

  Honigman Kids was the group's children's apparel concept. Stores sold children's clothing and also carried the Virus sub-brand. The brand was separated from the original group during the 2018 insolvency and acquired by Avni-Shoham Ofna, the operator of KIWI, allowing it to continue under separate ownership.

• TNTTeenage fashion

  TNT was Honigman's youth-oriented fashion brand, aimed at teenage and younger consumers. It operated within the group's national store network and was later sold separately to a franchisee. The new operator attempted a turnaround through store closures and withdrawal from some major shopping malls, but TNT subsequently encountered further financial distress.

• VirusChildren's fashion sub-brand

  Virus was a children's fashion sub-brand sold inside Honigman Kids stores. It formed part of Honigman's effort to broaden its children's retail assortment under a dedicated store concept.

• 2011TNT winter campaign with Jesus Luz and Irina Denisova

  Israel

  TNT used Brazilian model Jesus Luz and model Irina Denisova in a winter advertising campaign. Israel's Consumer Protection Unit objected to the sexual nature of the imagery and alleged that Denisova appeared underage.

  Outcome. Authorities ordered the advertising to be removed within seven days. TNT disputed the allegations, stated that Denisova was 19 when photographed, and said notices identified the models as adults.

  Source

• 2018Seek court protection from creditorsStrategy

  The group faced severe pressure from debt, store leases, online competition and declining competitiveness in physical retail.

  What changed. Honigman filed for a stay of proceedings and entered a court-supervised restructuring process.

  Aftermath. The integrated group was broken apart, with the women's chain closed and selected children's and youth assets transferred separately.

  Reported liabilities. NIS 234 million (February 2018)

  Source
• 2018Sell children's retail assets to KIWI operatorM&A

  Trustees sought a buyer for stores and children's inventory while the group remained under a stay of proceedings.

  What changed. The Tel Aviv District Court approved the sale of 38 stores and related children's assets to Avni-Shoham Ofna for approximately NIS 6.25 million.

  Aftermath. Honigman Kids continued under separate ownership, while the women's chain was liquidated and TNT was handled in a separate transaction.

  Approved transaction value. NIS 6.25 million (April 2018)

  Source
• 2018Sell property owned by the foundersOther

  The restructuring required additional asset realization while the company and its owners faced substantial obligations.

  What changed. The court approved the sale of a Tel Aviv building privately owned by the Honigman brothers.

  Aftermath. The proceeds formed part of the broader insolvency and liquidation process.

  Approved property sale value. Approximately NIS 20.3 million (April 2018)

  Source

• 2018Inventory valuation questioned during insolvencyControversy

  During the court-supervised restructuring, trustees were instructed to investigate an apparent discrepancy between inventory presented at approximately NIS 120 million and reassessed estimates of roughly NIS 38.5 million to NIS 43 million.

  Source
• 2011TNT campaign challenged over sexualized and allegedly youthful imageryControversy

  Israel's Consumer Protection Unit challenged a TNT winter campaign, alleging that the imagery was sexual in nature and that one model appeared underage. TNT rejected the characterization and emphasized that the model was an adult.

  Source

• 2018Honigman seeks court protection from creditors

  The fashion group entered a court-supervised stay of proceedings, reporting approximately NIS 234 million in liabilities while operating roughly 150 stores under its three main brands.

  Bankruptcy
  Source
• 2018Court approves sale of part of Honigman's store network

  The Tel Aviv District Court approved a revised transaction transferring 38 stores and children's retail assets to Avni-Shoham Ofna, operator of KIWI, while the broader group proceeded toward liquidation.

  M&ABankruptcy
  Source
• 2018Honigman women's chain closes as brands are separated

  The historic women's chain was wound down after no buyer was found. Honigman Kids continued under new ownership, while TNT was transferred separately to a franchisee.

  BankruptcyM&A
  Source

1. Honigman (clothing company)