Not quite up to gold standard
Has ChesaNyama owner lost its shine?
After a string of ill-fated moves since listing, Gold Brands is set to approach shareholders for funds
The fast-food franchiser, which has been listed on the JSE’s AltX for a little less than 18 months, is in an unfavourable position, with current liabilities exceeding current assets by almost R18m.
Gold Brands Investments will approach shareholders for funds of anywhere between R15m and R50m following a disastrous financial year during which the company reported a net loss of R48m. The fast-food franchiser, which has been listed on the JSE’s AltX for a little less than 18 months, is in an unfavourable position, with current liabilities exceeding current assets by almost R18m. On listing in February 2016, Gold Brands, under the leadership of Praxia Nathanael, was optimistic about its prospects for expanding the company’s local and global footprint. At the time, the group had about 300 ChesaNyama stores and a few stores under the Black Steer, Wild Wings and 1+1 Pizza brands.Since listing, the group has been involved in a number of seemingly ill-fated moves. First was a memorandum of understanding with US players Red Hornbill and White Family Partnership to take the ChesaNyama brand offshore.In its latest results, the group says it shut 155 underperforming franchise stores. Turno...
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