Judge rules for embattled Pick n Pay after franchisee says group crippled its business

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Friday’s judgment allowed the group the right to attach the property of a large franchisee, which ran into arrears because its new discounting model.

Friday’s judgment allowed the group the right to attach the property of a large franchisee, which ran into arrears because its new discounting model caused it to operate at a loss.

AJP Group CEO John Baladakis says PnP’s redrafting of its discounting model crippled franchisees’ costings and profits, causing the API group to rack up debt. Soon after judgment was handed down on Friday morning, PnP had already attempted to attach some of the stores, but Baladakis has applied for leave to appeal. The appeal will be heard on Wednesday, 28 February.

Baladakis says the new model was intended to increase their sales and cover any losses around promotional activity. Instead, they saw sales flatlining.

 

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