South Africa’s Ackerman family has suffered another setback, with the market value of their Pick ‘n Pay investment dropping by $64 million.
The drop of Pick ‘n Pay’s market value corresponds with recent financial difficulties and legal problems. Pick ‘n Pay is currently in a legal dispute with one of its largest franchisees, the deeply indebted Baladakis store, which owes the company over $10 million.
Within a month, the market value of the Ackerman family’s Pick ‘n Pay shareholding fell by R1.21 billion ($64 million), reflecting the retailer’s share price loss.
Pick & Pay, founded in 1967, is a key player in Africa’s retail sector, with over 2,000 outlets in eight African countries. It is South Africa’s second-largest supermarket, trailing only retail giant Shoprite Holdings, which is owned in part by billionaire Christo Wiese.
Since February 19, Pick ‘n Pay’s shares have decreased by 36.1 percent, from R27.01 ($1.42) to R17.26 ($0.908). This decrease has reduced the group’s market valuation to below $450 million, resulting in significant losses for shareholders, including the Ackerman family.
The retailer’s downturn can be attributed to challenges such as a full-year loss, legal battles to liquidate a major franchise, and investor reactions to its recent share sale and plans to spin off its rapidly growing Boxer chain. Additionally, the company faces rising costs and stiff competition from larger rival Shoprite Holdings.
The South African Ackerman family has been heavily struck by the recent decrease in Pick ‘n Pay’s stock. Their share in the country’s second-largest grocery chain fell from R3.39 billion ($178.46 million) on February 19 to R2.14 billion ($112.97 million) in the last month alone, resulting in a loss of R1.24 billion ($65.48 million).
Despite economic hardships and market swings, Pick ‘n Pay has remained robust. The company is pursuing tactics to overcome the challenging operating climate and hopes for a positive comeback. The Ackerman family, influential investors on the Johannesburg Stock Exchange, and key figures in South Africa’s economy continue to play an important part in determining the company’s path.
