Retailer's 'steal' comes with liabilities of R3.5bn.
0n paper, it looked like a steal. In 2019, The Spar Group acquired a family-owned chain of supermarkets, Piotr I Pawel, in Poland for the token sum of €1 (about R20).
The 66 stores and one warehouse were in business rescue. It was also awarded the Spar licence for Poland, with 250 franchisees.
The investment bankers who shopped the deal would've no doubt assured then-CEO Graham O'Connor and board chair Mike Bosman that this deal would make them look like geniuses.
Simply apply some of that "world-class South African retail know-how" to fix the businesses and suddenly the group would have thriving operations in three international markets.
That our retailers (across both food and apparel) have, for the most part, struggled in other markets globally was ignored.
Some of those 250 franchisees abandoned the brand shortly after the deal was completed. A franchisee boycott in 2022, which saw around 60 retailers leave the group, meant it ended June 2022 with 164 stores.
'Enough'
This story is from the September 06, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 06, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
US blamed for expo row
Analysts warn exclusion could have dire consequences for SA down the line.
4900 visas for critical skills jobs
South Africa has a list of almost 150 jobs considered by the department of employment and labour (DEL) to be in short supply.
Nsfas to decentralise
Department welcomes move, plans to set up regional, satellite offices.
Lawsuits cost health billions
Investigations stop R3 billion in fraudulent claims, parliament hears.
City face Inter reunion
Manchester City are braced for their Champions League reunion with Inter Milan at the start of an expanded tournament that will be \"so tough\" for the 2023 winners.
League Cup no inconvenience
Manchester United manager Erik ten Hag insisted he still believed English football's League Cup remained a \"significant\" competition.
State of rates in Africa
Africa’s largest economies to make changes for first time in years.
RAF not about to 'implode'
»» Improvements not sustainable without legislative changes, says Letsoalo.
Can Superbalist grow?
Shein overtakes the SA retailer, while Bash is different kind of threat.
Crochet gets sex appeal
100% cotton yarn garments do not loose shape ina cold wash.
