Selina Israel seeks liquidation after parent company's asset sale
Singaporean buyer shows no interest in Israeli operations, leaving the company leaderless and insolvent.
Selina Operation Israel, a holding company that owned multiple subsidiaries previously operating hostels and hotels across Israel, has petitioned the court for dissolution, effectively seeking the liquidation of the group.
The company ceased operations in August 2024 after its UK-based parent company, Selina Hospitality PLC, entered insolvency proceedings in England, leading to the appointment of trustees. In its application, Selina Operation Israel, represented by attorney Ehud Gindes of the Goldblatt Gindes Yariv law firm, claims that Selina PLC had managed a network of hotels through subsidiaries and was even publicly traded on the New York Stock Exchange.
According to the petition, Selina PLC financed its expansion by securing credit from financial institutions and raising capital from investors. However, the COVID-19 pandemic, coupled with rising global interest rates, forced the company to close its hotel sites for extended periods. As a result, Selina PLC became insolvent, leading to the appointment of trustees in England.
It is further alleged that in August 2024, Selina PLC’s trustees in England announced the sale of all its assets to a Singaporean corporation. Following this sale, the Singaporean buyer informed the directors of all Selina PLC subsidiaries and affiliates—including Selina Operation Israel—that their positions had been terminated. Consequently, the tenure of the founders of Selina Group, Rafael Museri and Daniel Rudasevski, who were listed as directors of Selina Operation Israel, also ended in August 2024.
Selina Operation Israel claims that despite months of efforts to establish a dialogue with the Singaporean corporation to receive instructions, appoint new directors, or clarify the company’s status, no response was received. The company believes the Singaporean corporation has no interest in maintaining Selina’s operations in Israel, likely due to the ongoing war and the sharp decline in tourism.
As a result, the petition states, "the company was effectively left without ownership, no replacement directors were appointed, and it found itself insolvent. Already struggling due to the impact of the war on Israel’s tourism and hospitality industry, the company lacked the financial resources to support its subsidiaries, pay rent to property owners, or cover operational expenses. Operations ceased entirely in August 2024."
Selina Operation Israel's total unpaid liabilities are estimated at approximately NIS 1.5 million, covering debts to authorities, suppliers, and employees, in addition to loans totaling roughly NIS 32 million.
The application further asserts that the company has no remaining operations, assets, management offices, or employees. "The purpose of this petition is to facilitate an orderly liquidation of the company and its subsidiaries due to insolvency," it states.
It remains to be seen whether, during the legal proceedings, any party will seek to acquire rights to the Selina brand.
