TV Host Eliraz Sade Reveals Devastating Financial Loss
Translated & summarized from Ice by baba
Israeli TV host Eliraz Sade revealed he lost between 3 to 4 million shekels and sold two apartments due to a failed business venture with the agricultural produce chain "HaChaklai." He became deeply involved after joining in 2016, paying off debts and selling his Ashkelon apartment. The business faced lawsuits from franchisees, and a 2019 court ruling awarded franchisees damages. Sade considers the experience a valuable lesson about people and business.
The story in 6 lines · by baba
- Eliraz Sade lost between 3 to 4 million shekels and sold two apartments due to a failed business venture.
- Sade was a partner in the agricultural produce chain "HaChaklai" starting in 2016.
- He became deeply involved in the business management and paid off its debts.
- The business faced lawsuits from franchisees who claimed unmet business promises.
- A 2019 court ruling awarded franchisees damages against Sade's company.
- Sade views the financial loss as a valuable life lesson.
Israeli TV host and businessman Eliraz Sade has revealed the extent of his financial ruin following a failed business venture. Sade, known for hosting a program on i24news, was a partner in the agricultural produce chain "HaChaklai" starting in 2016. He initially joined the venture as a public relations figure due to his public profile, aiming to build brand recognition. However, as the business encountered significant problems, including financial difficulties, franchisee lawsuits, and complaints about pricing, Sade became deeply involved in its management.
Sade explained that he invested heavily, stating, "I entered as a partner with public relations percentages, but when the business got complicated, I threw myself into it, and I lost everything I had because my name was on it. I went in, I paid all the debts. I sold the apartment in Ashkelon." He further elaborated in a separate podcast interview that he sold two apartments to fund the business, losing between 3 to 4 million shekels, primarily to protect his public image.
The business faced legal challenges, including three franchisees who left the chain to operate independently. Sade's company sued them for breach of contract, seeking approximately 150,000 shekels from each and demanding they cease competing operations. The franchisees countered, alleging the company failed to fulfill its business promises, particularly regarding the model of direct purchasing from farmers and reducing intermediary margins.
In 2019, a court ruled that "HaChaklai" did not provide adequate operational infrastructure or support to the franchisees. The franchisees were awarded about 270,000 shekels, which was reduced by debts for goods, resulting in a net payment of around 150,000 shekels. However, the court dismissed claims that Sade had intentionally misled or misrepresented the business.
Despite the severe financial setback, Sade views the experience as a valuable lesson, stating, "When you go through such a period, you learn about everything. It teaches you about people, about yourself, about business in Israel." The gradual closure of "HaChaklai" branches followed these difficulties.
