BUSINESS NEWS - Spur Corporation, the JSE-listed multi-brand restaurant franchisor, is facing a multi-million rand damages claim from GPS Foods Group RSA, a subsidiary of the global GPS Food Group.
GPS Foods Group RSA has served a summons on Spur for alleged damages of R183.3 million related to the establishment of a so-called joint venture for a rib supply and processing facility in Cape Town.
GPS Food Group established the rib supply and processing facility in about 2017 after acquiring premises in Cape Town.
It is believed the intention was that the facility would be an exclusive supplier to Spur Corporation and its franchised outlets.
The facility stopped production in 2020, with the premises and the assets subsequently sold and the remaining staff retrenched.
The facility is believed to have employed up to 100 people in peak season.
Attempts to obtain comments from GPS Food Group have been unsuccessful.
GPS Food Group’s claim may be complicated by the death of former Spur CEO Pierre van Tonder on May 9 2021.
Spur reported in May 2021 that Van Tonder, who was MD and CEO of the Spur group for 24 years and retired in December 2020, had shot himself at his home in Cape Town.
Claim ‘being defended’
Spur Corporation corporate communications manager Moshe Apleni confirmed last week that a high court claim has been lodged against Spur Corporation and is being defended by the corporation’s legal team.
Apleni said a summons was issued in the Western Cape High Court by GPS Foods Group RSA on December 24 2019 but Spur has not yet been informed of a date when the claim will be heard.
Spur Corporation confirmed in a note to its latest financial results that it has engaged with GPS over several years regarding product supply and the prospect of a rib processing joint venture.
It said GPS alleges that an oral agreement was concluded between GPS and the Spur group on or about February 2 2017 in terms of which the parties would establish a joint venture to acquire, develop and manage a rib processing facility.
But Spur said no written agreement was ever executed with GPS.
