Golf: A compromise was signed with Dedi Schwarzberg – Capital Market

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It is reported that a compromise was reached with Adika founder and CEO Dedi Schwarzberg, who resigned last April. Following the report, Golf shares are up about 4.5% in trading.

Several months after Schwarzberg’s resignation, it filed the disclosure request, claiming that Golf, Adika’s parent company, as well as its controlling shareholder Clal Industries, promoted stakeholder transactions, excluded Adika’s management from relevant information about it and violated its powers, in violation of government rules. Corporate proper and in a manner that endangered the existence of the company. Therefore, Schwarzberg asked to receive minutes of the board meetings.

About a month after Schwarzberg’s request, Golf filed a lawsuit against him in the amount of NIS 800,000, which two months later, last November, was increased to NIS 2.4 million. Golf claimed that Schwarzberg violated an agreement he signed with her when he allegedly sought to raise capital from foreign investors for Adika, for the purpose of a loan that would be given to its executives and through which they would purchase Adika shares and take control of the company from Golf.

Now both sides have withdrawn their claims against each other, with Golf’s report stating that the non-compete agreement originally signed between the company and Schwarzberg remains in force.

Under Adika’s new CEO, Roi Hasel, the company’s revenues in the third quarter amounted to NIS 49.6 million, an increase of NIS 39.2 million from the corresponding quarter, and a more modest increase compared to NIS 41 million in the second quarter of 2020, the peak of the corona period when growth was expected Higher than a company whose main arm is online activity.The explanation is the disruptions in the production lines that have affected the entire fashion industry.

The parent company entered NIS 229.9 million in the third quarter, compared with NIS 236.2 million in the corresponding quarter last year, a decrease of 2.7%, mainly due to a decrease in sales of physical stores in the field of home fashion and clothing fashion during the closing of stores due to the Corona virus.