ByNETANEL ARIEL/GLOBES/TNS , EITAN GERSTENFELD/GLOBES/TNS

JULY 6, 2026 13:25

The abrupt failure of summer camp operator Simad Holdings after its proprietors stripped the firm of cash left Tel Aviv investors stunned. Near the end of May, less than half a year after raising NIS 620 million through a bond sale in Tel Aviv, the New York company entered a debt emergency that ranks among the quickest meltdowns in local market records.

During its path to serious misconduct that caused the downfall, Simad bypassed numerous supervisory bodies without issue, earned trust from prominent Israeli fund managers, and stranded local creditors in dire straits.

The rapid demise of Simad Holdings centers on its proprietors, siblings Michael and David Shabsels. Globes followed the tale of the brothers decline, familiar names in New York Jewish circles who earned the label summer camp royalty. They started in publishing, assembled a property portfolio, and built a reputation for charitable giving. Yet under the surface the pair carried massive obligations estimated above one billion dollars.

One insider close to the failed enterprise remarked that the episode could inspire a film. Numerous issues surface about how the Shabsels brothers sustained questionable practices undetected for years and how such enormous liabilities accumulated without intervention.

From sports publishing to property holdings

The Simad story revolves around the Shabsels brothers Michael aged 56 and David aged 49 who were raised in Brooklyns Park Slope area and attended local private schools.

The siblings launched their initial venture during university studies in the 1990s fueled by a shared passion for athletics especially basketball. While pursuing economics at Brandeis University in Massachusetts older brother Michael established University Sports Publications a firm producing sports magazines focused on college programs.

The company website states that University Sports Publications became the top publisher in its niche serving more than 800 North American colleges and universities with magazines viewed as essential keepsakes for team supporters including students alumni staff and the wider public.

Younger brother David entered the venture years later after finishing art studies at Adelphi University in New York and at UMass Lowell where he concentrated on college basketball and secured a full scholarship.

Israeli Shahar Nahmias who studied computer science at UMass Lowell played basketball with David Shabsels. Nahmias from Kibbutz Gadot and its business manager was named chairperson of Simad Holdings by the brothers placing him now against his former teammate as he seeks repayment for Israeli bondholders.

After graduation David joined his brother in the sports magazine enterprise that expanded rapidly with strong circulation. In 2009 the pair sold their half stake in University Sports Publications for 37.5 million dollars providing capital to enter summer camps and real estate via Damis Holdings whose name derives from their initials. Like Simad Holdings the firm recently sought bankruptcy protection in the United States.

Damis Holdings website indicates ownership of roughly 80 assets valued together at one billion dollars. In addition to thirty summer camps for Jewish youth in the US operated under Simad Holdings the portfolio includes retail centers offices water parks and hotels.

A source familiar with operations notes the structure includes dozens of private entities each typically tied to a single property. Overall real estate holdings are extensive encompassing around 1800 multifamily rental units.

A tangled debt structure

The Damis site portrays the Shabsels brothers as astute investors with sharp opportunity recognition who constantly pursue attractive deals. Yet behind the refined image of a thriving property empire lies an intricate network of obligations and liens whose first signs appeared last month with dimensions growing clearer since.

The situation surfaced in late May when Simad Holdings Israeli board learned that owner and chief executive Michael Shabsels had withdrawn 32 million dollars equivalent to NIS 100 million from the firm without restriction and moved it to his personal account.

This withdrawal left Simad Holdings short of funds for its June interest payment to bondholders prompting suspension of bond trading on the Tel Aviv Stock Exchange and an inquiry by the Israel Securities Authority.

Soon it became evident that the obligation to Israeli bondholders represented only the initial layer of debt amassed through the brothers controlled entities. Consequently Simad Holdings pursued Chapter 11 creditor protection under standard United States bankruptcy procedures.

Beside the action by Simad Holdings Israeli creditors owed approximately 210 million dollars 270 million including interest further claims arose from other lenders who financed the summer camps for sums exceeding 100 million dollars.

Additionally numerous private companies owned by the Shabsels brothers sought Chapter 11 protection. Filings show the brothers hold real estate assets including commercial properties and offices carrying liabilities ranging from 500 million to one billion dollars.

Sources indicate the debt expansion stemmed largely from merchant cash advance loans totaling 140 million dollars. These advances represent an unregulated United States market for rapid short term financing typically lasting up to two years.

Such loans are costly and often obtained by smaller enterprises lacking access to conventional banks explained a knowledgeable source. Repayments may occur weekly with terms requiring personal guarantees and a share of business cash and credit card revenue.

Michael Shabsels secured merchant cash advance loans between half a million and one million dollars across dozens of assets with repayments escalating to over 200 million dollars. He assured lenders repayment could come from summer camp revenue if required.

To shield summer camp income from merchant cash advance lenders Simad filed for Chapter 11 protection. It remains odd that two separate law firms representing the bond trustee and the company overlooked prior linked mortgages noted sources close to the firm.

Claims surrounding the Simad Holdings collapse focus on older brother Michael portrayed by acquaintances as sharp and charismatic conveying success. Younger brother David is characterized as sensitive and agreeable. An associate informed Globes that Michael pursued the loans and risks thereby harming not only investors but also his sibling.

Those familiar with the pair suggest Michaels drive may have contributed to the failure. Support appears in a 2020 motivational video titled Business Resilience in Challenging Times uploaded to YouTube where he states that business owners must maintain the belief they will never fail or surrender regardless of conditions. The sole outcome worse than poor business is quitting which guarantees failure.

In recent years the Shabsels brothers cultivated images as philanthropists and community figures. Michael and his wife Alyssa serve on the international board of United Hatzalah while Michael advises Olami an organization providing mentoring for Jewish students in the United States. David supports the Orthodox Union.

Two years ago the brothers hosted an event for Nevut which aids IDF lone soldier veterans returning to the United States at their Westhampton summer camp in New York State. This profile aided dealings with Israeli underwriters and institutions. They emphasized support for IDF lone soldiers recalled a participant from one meeting with financial firms.

An acquaintance describes the brothers as family oriented individuals who enjoy reading basketball and films adding they are prominent in New York Jewish circles. A New York Jewish businessman notes nearly everyone in Orthodox and Reform communities recognizes their summer camps.

Dividing land from structures

Beneath the success image and donations the brothers business practices raised concerns. They favored debt noted a recent associate to United States real estate site The Real Deal seeking maximum leverage on assets.

After property acquisitions the brothers separated land from buildings to secure mortgages on both elements boosting financing obtained. They then leased both portions prompting lawsuits from partners in several summer camps.

In 2021 partners in Kiwi Country Day Camp in Westchester County siblings Karla and Ivan Bellotto sued the Shabsels brothers alleging plans for a hostile takeover dilution of partnership interests refinancing with proceeds taken personally and restricted access to records. Comparable allegations arose in suits from partners at Camp Lavi in Pennsylvania.

Such conduct escaped notice from Israeli regulators including the Israel Securities Authority which issued no warnings and rating agency Midroog whose staff inspected Simad Holdings sites before assigning an A3 rating to the bonds. Investment houses More Meitav Yelin Lapidot Finessa Kabin and Migdal Capital Markets plus insurer Harel all acquired the issued bonds.

During the offering the Shabsels brothers visited Israel to meet financial institution investment managers. Professionals stated background checks were completed and cleared. Independent verification was impossible. If fraud occurred with concealed details it proved difficult to detect. Focus remained on understanding business operations explained one senior manager who participated in the offering.

Another attendee at a meeting observed that presented figures appeared unrealistic leading to non participation. No rationale exists for firms denied United States credit to obtain funds from Israeli investors. Local banks familiar with operations and individuals decline so distant parties thousands of kilometers removed should likewise refuse.