Ackerman family steps down from Pick ‘n Pay amid major retailer revamp
The Ackerman family is stepping down as the majority shareholder of Pick n Pay Stores Ltd., South Africa's third-largest grocer. Gareth Ackerman will retire as chairman as the company implements a six-point strategy to restore profitability. The Cape Town-based retailer reported weak annual earnings and a substantial trading loss, prompting this significant leadership change and a planned rights offer to support the business overhaul.
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By Janice Kew
The Ackerman family is stepping aside as the majority shareholder of Pick n Pay Stores Ltd. amid a revamp of South Africa's third-largest grocer by revenue.
The move comes as Gareth Ackerman also said he will retire as the chairman of the board of directors as the company focuses on a new six-point strategy to restore the core Pick n Pay supermarket business to profitability. The family's investment-holding company has given "firm written confirmation to vote in favor" of the planned rights offer, it said in a statement on Tuesday.
The Cape Town-based company last year abruptly brought back former leader Sean Summers as chief executive officer, after warning it would post its first interim loss since at least 2001.
Earlier Tuesday it reported weak annual earnings, driven by a substantial trading loss.
"The Ackerman family has for some time been considering the changing operating environment and the need for renewal at Pick n Pay, including at board level," the outgoing chairman said. "The difficulty the business has found itself in recently has proved an opportune moment to accelerate the renewal process."
The stock has slumped 28% in the past 12 months, making it the sixth-worst performer on the benchmark FTSE/JSE Africa All Share Index.
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