Pick n Pay to liquidate major franchisee’s business

Pick n Pay has been given the go-ahead to attach the property of the Baladakis group, after the franchisee lost its battle to stop liquidation for a debt of R224-million. The retailer says it now expects the liquidation application to be heard in the Johannesburg High Court by about 12 March.

Baladakis employs 450 staff, uses about 250 contractors and 80 subcontractors, and has an annual turnover in excess of R1.5-billion.their livelihoods were at risk. “We’re very, very worried about what happens to those employees because if PnP manages to take over our stores, they have their own structure so we probably have between 80 and 100 people who are going to lose their jobs. We’re extremely concerned.

“On a personal level, it is deeply disappointing as I have known the family for some 30 years and have not taken this decision without due consideration. Summers’s statement said that in line with Pick n Pay’s contractual obligations, it had continued to supply the group with stock daily, but the AJP Group had ceased all payments in the past week. Meanwhile, Pick n Pay’s liability was growing. “We have a duty to act in the best interests of all parties, including all our franchisees and the Pick n Pay Group, in order to maintain continuity and respect for the agreements we have in place.

Source: News Formal (newsformal.com)

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Pick n Pay shares crash as retailer announces measures to shore up balance sheetShares in Pick n Pay crashed nearly 14% on Wednesday after the embattled retailer announced a raft of proposed measures to shore up its balance sheet, including tapping shareholders for R4 billion and separately listing value chain Boxer.
Source: News24 - 🏆 4. / 80 Read more »

Judge rules for embattled Pick n Pay after franchisee says group crippled its businessFriday’s judgment allowed the group the right to attach the property of a large franchisee, which ran into arrears because its new discounting model.
Source: dailymaverick - 🏆 3. / 84 Read more »

Pick n Pay has a lot to proveA look at how to value property stocks and why investing in your student years matters.
Source: Moneyweb - 🏆 5. / 77 Read more »

Pick the perfect tentPick the perfect tent
Source: gomagSA - 🏆 15. / 63 Read more »

John Hlophe to become first SA judge to be impeachedThe final step in the process entails President Cyril Ramaphosa removing Hlophe from office.
Source: ewnreporter - 🏆 35. / 51 Read more »

Ranking SA’s grocery delivery apps to find the bestGrocery delivery apps from Spar, Woolworths, Pick n Pay, Checkers, and more battle it out in this episode of Geeks Love Lists.
Source: htxtafrica - 🏆 42. / 51 Read more »