Israeli Fashion Brand Adika Resurrects After $38M Loss, Halts Shabbat Sales

Israeli fashion brand Adika has returned to the market under new ownership, sparking debate over its decision to halt online sales during the Jewish Sabbath, a move critics call outdated and others defend as a commitment to tradition. The brand, which was revived after filing for bankruptcy in 2018 with losses exceeding 113 million shekels (approximately $38 million), is now owned by Golf Group, led by entrepreneur Eyal Greenberg. The company’s decision to pause operations on Shabbat has reignited discussions about the intersection of religious observance and modern e-commerce practices in Israel.

Adika, originally acquired by Golf Group in 2015, was once valued at 170 million shekels when it went public. The company aimed to expand into the U.S. market, but those plans stalled. Instead, Adika faced financial challenges, accumulating excess inventory and depleting cash reserves, leading to its delisting from public markets. After restructuring, Golf Group relaunched Adika as an online-only brand, positioning it as a digitally native fashion label targeting younger consumers.

The decision to suspend online sales from Friday evening to Saturday evening—when Jewish law prohibits work, including commerce—has drawn mixed reactions. Some shoppers have expressed frustration over delayed order fulfillment and limited weekend accessibility, particularly during peak shopping periods. Others, including religious consumers and brand loyalists, have supported the move as a reflection of Adika’s identity and values.

Critics argue that in an era dominated by 24/7 digital commerce, halting operations for 24 hours each week could put the brand at a competitive disadvantage. E-commerce rivals in Israel, including similar brands and global platforms like Amazon, continue to operate without Sabbath restrictions. This has raised questions about whether Adika’s strategy aligns with contemporary consumer expectations or risks alienating customers seeking convenience.

Supporters of Adika’s approach point to Israel’s growing segment of religious and traditional consumers, who may prefer brands that respect their values. The company’s leadership has not publicly commented on the specific rationale behind the policy, but insiders suggest it is part of a broader effort to differentiate Adika in a crowded fashion market.

The revival of Adika comes as Israel’s fashion and retail sectors adapt to post-pandemic changes, with many brands shifting toward digital-first models. Golf Group’s investment in the brand signals confidence in its potential, though the Sabbath sales policy remains a contentious issue. As the debate continues, Adika’s performance in the coming months will be closely watched by industry observers and consumers alike.

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