Spar has acknowledged the SCA’s decision to dismiss its request for special leave to appeal in its long-running credit dispute with the Giannacopoulos Group, Business Day says.

Spar said it respected the court’s decision and is satisfied to have reached a resolution.

The company said the judgment offered clarity on how it can exercise discretion in setting credit terms for retailers.

The dispute stemmed from the termination of the Giannacopoulos Group’s membership by the Spar Guild of Southern Africa in October 2019.

After this, Spar adjusted the group’s credit and drop shipment terms, a move the KZN High Court (Durban) later ruled was unreasonable.

As previously reported, the long-standing dispute with the group resulted in Spar withdrawing stock supply, credit, and brand licensing from the Giannacopoulos businesses, which operates 23 Superspar and Spar stores and 22 Tops liquor stores, employing 2 800 people.

Spar cited violations of labour laws and attempts to bypass its trade model as reasons, but the franchisee claims these actions were driven by personal animosity and an attempt to seize its stores.

The SCA judgment was critical of Spar’s conduct, highlighting that its sudden credit restrictions were unjustified and seemed designed to force the Giannacopoulos Group out of business.

This legal setback comes as Spar grapples with a R9bn debt burden, which it is trying to reduce by selling assets and exiting its unprofitable Polish operation.

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