Pick n Pay to liquidate stores as franchisee loses appeal bid

Pick n Pay CEO, Sean Summers, has taken decisive legal action against a franchisee who owes the retail giant more than R200 million. The franchisee, John A Baladakis, has been operating Pick n Pay stores on the East Rand for three decades, but now faces liquidation after failing to pay back the debt.

Baladakis argues that Pick n Pay’s bulk discounting model implemented six years ago is to blame for his financial distress. However, the court ruled in favor of Pick n Pay, dismissing Baladakis’ arguments as “vague” and “frivolous.” Despite the legal battle, Pick n Pay CEO Summers expressed disappointment at having to take such drastic action against a long-time franchisee.

The retail giant has even continued to supply the franchise stores with daily stock, but Baladakis stopped all payments in the past week. Pick n Pay CEO Summers emphasized that the financial situation faced by the Baladakis group is a harsh reality, as other franchisee groups and individual franchisees are running profitable and sustainable businesses.

Due to the ongoing legal challenges from the Baladakis group, Pick n Pay has filed a court application for the liquidation of the franchise businesses. This marks the first time in Pick n Pay’s history that such action has been taken against a franchisee.

CEO Summers reiterated that Pick n Pay will always follow due legal process, and he aims to resolve the situation without it playing out in the public domain. The liquidation application is expected to be heard in the Johannesburg High Court around 12 March.

Despite the legal battle and financial challenges faced by the Baladakis group, Pick n Pay remains committed to supporting its other franchisee groups and maintaining profitable relationships. The article emphasizes the importance of following legal procedures and resolving financial disputes in a fair and transparent manner. By taking decisive action, Pick n Pay aims to protect its business interests and uphold its commitment to sustainable and profitable operations.

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