Zikri owes an estimated NIS 10 million ($2.65 million) to grey market creditors and has even received death threats. Furthermore, it has been revealed that recently Zikri negotiated for the sale of his hair design school.
Thursday, Zikri sent out an email to his acquaintances informing them that he is shutting down his business. He recently stopped taking phone calls.
Shuki Zikri opened his first salon in 1985 and has since expanded to cosmetics and hair dyeing products.
Today, the coiffeur's empire consists of a nationwide hair salon chain, the Shuki Zikri boutique salon in Tel Aviv opened last February, cosmetics and spa products, a hair styling school chain, hair products sold in major drugstores, hair dye products and additional products sold in major drugstores as well.
Sources on the market claim that Zikri has been endeavoring to finance his activities in the past year obtaining credit from various sources.
The hairstyling empire is run by Shuki Zikri himself and his brother Mike, who was in charge of driving the business's expansion and managing the business's financial affairs. Shuki Zikri was in charge of the professional aspect of the business.
According to a source on the market, "The monster they built in Tel Aviv at an immense investment was their final move. The investment was insane; it was sheer megalomania and the final weight that sunk the empire.
"They were forced to bring in a partner to pour money into the business and apparently it did no good in light of the size of their debt."
Shuki Zikri's spokesperson said in response, "After more than 20 years, we regretfully announce the end of our activity due to financial problems.
"From the moment of this announcement, the Shuki Zikri salon chain will shut down its activity throughout the country and will disclaim all professional responsibility for any activity which bears and uses the brand name, whether directly or indirectly.
"Even as these lines are being written, we still hold on to the hope that the Shuki Zikri chain will find its way back up in the future."
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