In a recent blow compounding their ongoing financial challenges, South Africa’s Ackerman family has encountered yet another setback, witnessing a decline of $64 million in the market value of their investment in Pick ‘n Pay.
The downturn in Pick ‘n Pay’s market value coincides with recent financial challenges and legal disputes. The retailer is currently embroiled in a legal battle with one of its major franchises, the heavily indebted Baladakis store, which owes Pick ‘n Pay over $10 million.
According to data tracked by Billionaire.Africa, the Ackerman family of Africa has experienced a decrease of R1.21 billion ($64 million) in the market value of their Pick ‘n Pay stake within a month, reflecting the decline in the retailer’s share price.
Pick n Pay share price tanks on mounting losses, investor concerns
Established in 1967, Pick n Pay is a major player in Africa’s retail sector, with more than 2,000 stores across eight African countries. South Africa’s second-largest grocer, it trails behind retail giant Shoprite Holdings, partly owned by billionaire Christo Wiese.
Since Feb. 19, Pick ‘n Pay’s shares have declined by 36.1 percent, falling from R27.01 ($1.42) to R17.26 ($0.908). This decline has pushed the group’s market capitalization below $450 million, resulting in substantial losses for shareholders, including the Ackerman family.
This downturn is linked to various challenges confronting the retailer, including reporting a full-year loss, engaging in legal battles to liquidate one of its major franchises, and investors’ reactions to the company’s recent share sale and plans to spin off its rapidly growing Boxer chain, amidst rising costs and stiff competition from its larger rival, Shoprite Holdings.
Ackerman family loses $64 million as Pick ‘n Pay shares slide
The recent drop in Pick ‘n Pay’s shares has hit the South African Ackerman family hard. Their stake in the country’s second-largest grocery chain has decreased from R3.39 billion ($178.46 million) on Feb. 19 to R2.14 billion ($112.97 million) in the past month alone, resulting in a loss of R1.24 billion ($65.48 million).
Despite economic challenges and market fluctuations, Pick ‘n Pay remains resilient. The company is implementing strategies to navigate the tough operating environment and aims for a positive turnaround. The Ackerman family, prominent investors on the Johannesburg Stock Exchange, and key figures in South Africa’s economy continue to play a significant role in steering the company’s direction.
