Pick n Pay to liquidate major franchisee’s business

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This comes after the high court found against John Baladakis’s family-owned group over its R224-million debt to the retail giant.

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.

 

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