EDITORIAL: Bad faith and broken bonds
Corporate overreach and disregard for fair play evident in court ruling against Spar over Giannacopoulos Group
Spar is in a dubious doghouse. Last week, the Supreme Court of Appeal shot down its special leave application to overturn a high court ruling over its ill-fated decision to cut off its biggest franchisee, the Giannacopoulos Group.
The court found that the decision was done in bad faith and left the Giannacopoulos Group wide open for Spar to swoop in and seize their stores over fears of loan payments defaults. The ruling stopped short of outrightly accusing the company of sabotaging the group, but handed extra weight to the Giannacopoulos Group’s R2bn damages lawsuit. In the Spar 2024 earnings report, the lawsuit popped up as a possible liability. ..
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