Spar Guild backs Phil Roux for Spar chair hot seat

Says it has no confidence in the company's executive team but will 'support' the board's process in that regard. The directors of the The Spar Guild of Southern Africa, which represents independent retailers’ interests, have said they back former Nampak CEO Phil Roux to take over as chair of the board, adding that he has also attracted major shareholder support. This is according to a 10 September letter to interim Spar chair Lwazi Koyana from the guild leadership. The letter, revealing the influence of the guild, also welcomes the resignations of chair Mike Bosman and deputy chair Shirley Zinn, saying they “represent meaningful progress in addressing the mandate received from [the guild] national council”. The national council represents some of Spar’s largest retailers. Spar Guild pushes for new chair Bosman and Zinn resigned with immediate effect on August 17, citing a breakdown with the guild and “alleged threats” in a statement. The guild’s letter says that following months of engagement and conflict, the appointment of the new chair is an opportunity to align the retailers’ and the Spar board’s interests. It has also recommended two new appointments to the board – Spar Eastern Cape MD Conrad Isaacs and group sustainability executive Kevin O’Brien – having previously been in conflict with the board over its composition, including a lack of retail experience. The guild said in a separate late-night statement on Wednesday that while the letter was direct, “it was written in good faith with the long-term interests of the group and its retailers in mind”. It said following the resignation of the chair and deputy chair, Spar and the guild have committed to working together. The man Spar Guild is pushing for chair Roux was CEO of Nampak until 2025 and has over 30 years of FMCG experience, having previously served as CEO at Pioneer Foods, managing executive at Tiger Brands, and COO at Coca-Cola Sabco Africa. He was part of the turnaround at workplace solutions firm Adcorp, and has held non-executive board positions at a range of food producers including Oceana, Sea Harvest, Dairybelle, Langeberg and Ashton Foods. In its letter, the guild says Roux is being recommended based on his extensive turnaround and operational experience across major listed companies and the retail sector, as well as track record on numerous boards. “We understand that certain shareholders have commenced their own efforts to identify suitable candidates as chairperson and that there is meaningful shareholder support for Roux. “The guild retail directors would also support Roux for consideration,” it adds. Executive team also ‘an issue’ The Spar Group said in a media response that no appointments have been confirmed, and that a formal and independent process is underway to ensure board succession and renewal and find the strongest candidates. “The candidates proposed by the Guild will be considered against the same criteria and on the same basis as all other candidates.” In its letter, the guild says it wishes to work with Spar to rebuild relations and “participate constructively in the improvement of Spar”. However, it does not back the executive team. The Spar Group is being led by CEO Reeza Isaacs (former Woolworths CFO), with Megan Pydigadu as CFO. “We cannot be asked to support an executive in which we do not have the utmost confidence,” it says. “We think changes are required and regrettably the current team does not inspire the confidence to take Spar forward in the manner required.” Board remains satisfied with exco In its late-night statement, the guild back-tracked on this, saying “regarding executive capability and delivery, the letter asks the board to satisfy itself that the group has necessary retail depth, leadership and execution capability to deliver the turnaround required”. “That responsibility rests with the board, and we will support that process. It should not be interpreted as retailers standing against management.” Spar said in a statement that “the board remains satisfied that the current executive team has the capability to deliver Spar’s turnaround strategy and should be afforded the opportunity to do so, supported by clear performance milestones and ongoing accountability”. Challenges The group has faced a range of difficulties that began before the current leadership was in place. It exited Poland in 2024, paying R2.67 billion do so, and exited Switzerland in 2025 with a cash payment of R683 million covering debt extinguishment and a competition fine. Spar’s 2023 SAP software rollout at its KwaZulu-Natal distribution centre was plagued by data migration flaws and poor testing, leading to severe stockouts and an estimated R1.6 billion to R2 billion in lost turnover, and roughly R720 million in lost profit. That disaster led to independent retailers moving to buy from suppliers directly, instead of from Spar. Spar’s convenience store model now faces intense pressure from on-demand delivery services such as Checkers Sixty60. Chance to reset relationship Spar, in its media response, and the guild in its letter, both say they wish to rebuild trust and work together. The guild writes “our intention is not to revisit the conflict of the past several months, but to ensure that the lessons arising from it are reflected in the leadership and governance structures established for the future”. It adds that their futures and financial wellbeing are inextricably linked and “that the decisions taken during this renewal process will be important in determining that future”. Spar said: “The focus of both the board and management is firmly on executing the turnaround plan, strengthening operational performance, restoring retailer profitability and delivering sustainable value for retailers, employees, suppliers, customers and shareholders. “The group maintains its commitment to constructive engagement with the Guild; and ensuring that attention remains centred on the successful execution of these priorities.” Increase in investment Peresec Prime Brokers, a prime broker and OTC derivatives provider, has just increased its stake in Spar, acquiring a beneficial interest in the company’s ordinary shares. With this acquisition, Peresec now represents 6.254% of Spar’s total issued ordinary share capital – up from the previous 0.27% it held. Spar’s share price is down almost 80% from five years ago, and was down 57.74% year to date at close of trading on Wednesday. This article was republished from Moneyweb. Read the original here.