Pick n Pay, a South African retailer, has officially changed its ownership structure after the Ackerman Family took over after 57 years at the helm. The company reported a R3.2 billion loss for the financial year ended 29 February 2024 (FY24), with a R2.8 billion non-cash impairment on the assets of Pick n Pay company-owned stores due to its core grocery business. In response, the group announced a two-step capital raise plan, starting with a R4 billion rights offer. The offer was successful, with total subscriptions reaching R8 billion. The R4 billion generated is being used to pay down debt, stabilize the balance sheet, and invest in Pick n Pay's turnaround strategy.
The family reduced their percentage of voting rights from 52% to 49% as per the rights offer. The group said that a 3.00% reduction in the Ackerman family's voting rights has been undertaken to support its transformation. Gareth Ackerman, the son of Raymond Ackerman, will resign as chairman after the FY25 results are released. The recapitalisation of the business forms one of six strategic priorities aimed at restoring profitability at the group's core Pick n Pay grocery stores while driving further growth at the Boxer and Pick n Pay clothing.
The successful conclusion of the Rights Offer demonstrates the market's strong confidence in Pick n Pay's iconic brand and turnaround strategy. The group has completed the first step to recapitalize its business and plans to list Boxer on the JSE later this year. Boxer, alongside Pick n Pay Clothing, was a bright spark for the group amid a challenging operating environment.
