SPAR Group's Debt Reduction Strategy
Update: 2025-01-21
Description
South Africa's SPAR Group, burdened by ZAR 9 billion in debt accumulated through acquisitions, rising operational costs, and economic slowdown, is selling key assets including its head office and parts of its fleet to reduce its debt. This strategy prioritises core business operations and aims to improve financial stability. The sale-and-leaseback approach for some assets allows continued use while freeing up capital. The company's actions offer lessons for other businesses on managing debt, assessing asset performance, and communicating transparently with stakeholders. SPAR hopes these changes will lead to long-term growth and success.
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