Retail franchiser Taste Holdings’s share price tumbled 14% to R1.02 on Friday after it said it would not proceed with the sale of its jewellery stores whose brands include Arthur Kaplan and NWJ.
Taste said it was "evaluating alternatives to settle its debt which may have a material effect on the price of the company’s securities" — a statement that usually implies the company intends holding a rights offer.
Taste previously said it intended to sell its jewellery franchises to settle the R225m debt it took on to secure the South African rights to Starbucks and Domino’s.
"Having initiated a process for the sale of the luxury goods division, the company has concluded that it is not the opportune time to execute such a sale," Friday’s statement said. "This is due to the prevailing macroeconomic environment and generally tough retail trading conditions."