The business partnership between retail group Keshet Teamim and renowned pastry chef Dudo Otmazgin has collapsed, with management deciding to terminate his employment agreement while he retains a minority stake in the brand.
The fallout marks a definitive end to a high-profile culinary alliance that began with a multimillion-shekel acquisition just a few years ago. Tensions between the two sides escalated through public disputes, legal action, and disagreements over executive perks before management formally severed ties.
The collaboration originated in 2022 when Keshet Teamim acquired a 70% stake in Otmazgin’s pastry chain. The transaction valued the business at approximately 50 million shekels, designed to expand operations and integrate premium pastry products into the retail group’s supermarket branches.
Legal Battles and Corporate Friction
The relationship deteriorated as management and the pastry chef clashed over operational control and corporate standards. Otmazgin subsequently filed a lawsuit against Keshet Teamim alleging minority shareholder oppression, seeking roughly 368,000 shekels in damages over alleged breach of contract.
At the center of the legal dispute was the company’s refusal to finance the upgrade of the pastry chef’s luxury vehicle. Relations further soured following unilateral decisions by management, which included stripping Otmazgin of his luxury company car and excluding him from day-to-day decision-making processes. Conversely, representatives for Keshet Teamim argued that the chef’s conduct failed to align with the corporate standards of the group.
Public scrutiny intensified when footage circulated online showing the luxury vehicle assigned to Otmazgin parked in a designated handicap space. The incident drew widespread public criticism, adding further strain to an already fractured business relationship.
Corporate Restructuring and Brand Ownership
Addressing the separation, Keshet Teamim stated: “Following a structured process, the company decided to end the engagement with Dudo Otmazgin, who was employed by the company alongside his partnership in it. His employment contract is anyway scheduled to end in three months. At the same time, the partnership agreement with Dudo Otmazgin remains in place.”
Despite the termination of his employment as head pastry chef, Otmazgin continues to hold a 30% stake in the namesake pastry brand.
