Shares in embattled retailer Spar plunged 7.33% on Friday after the surprise resignation of CEO Angelo Swartz, 28 months into the role, as the group works itself back to recovery.
The group’s operational efficiencies have been hamstrung by the poor implementation of the SAP system at the KwaZulu-Natal distribution centre, which curtailed sales and led to litigation from disgruntled retailers.
The group said in a statement that Swartz will stay on for three months to ensure a smooth handover.
CFO Reeza Isaacs will take over as CEO from March 1, while COO Megan Pydigadu becomes CFO. A new MD role for the core groceries and liquor business will also be created to tighten operational control, the group said.
Board chair Mike Bosman said Swartz led the group with integrity during a period of “significant” complexity and change.
“The board is deeply appreciative of his leadership and the achievements under his tenure. We respect his decision and thank him for the constructive and principled manner in which this transition has been undertaken. The business is positioned to build on the progress achieved and to accelerate disciplined execution of its strategic priorities,” he said.
The group has struggled to win over investors, with the share price down more than 40% over the past three years, now valuing the company at about R16bn.
The share price, which was quoted at R181.94 in November 2021, dwindled to R83.89 at Friday’s close on the JSE.
Swartz’s departure marks another leadership shift at a company still navigating a delicate recovery. While the balance sheet is stronger, a lawsuit, retailer unrest and the risks tied to further SAP implementation indicate the pressure on Spar’s new leadership will be immediate and intense.
His exit also comes as the wholesaler faces a R168.7m lawsuit from one of its biggest franchise groups and pushes ahead with an aggressive turnaround strategy after years of losses, debt and operational missteps.
The group is being sued by the Giannacopoulos family, which owns 46 Spar, SuperSpar and Tops stores. In papers filed in the Durban high court, the family claims the botched rollout of the SAP system at Spar’s KwaZulu-Natal distribution centre in early 2023 caused supply chain chaos, empty shelves and lost customers.
Estimates have put the cost of the failed implementation at about R1.6bn in lost turnover and about R720m in lost profit by September 2023. The retailers are claiming R168.7m in damages.
Swartz was appointed CEO in October 2023 after a turbulent period of leadership changes and mounting debt. Under his watch, Spar moved to clean up its balance sheet and exit troubled offshore ventures.
The group sold its Polish business and moved to dispose of its Swiss and UK operations after heavy impairment losses. Those disposals, with tighter working capital management, reduced net debt by 40% to R5.4bn by the end of the 2025 financial year.
But the clean-up came at a steep cost. The group reported a comprehensive loss of R5.08bn for 2025, largely due to impairments linked to discontinued European operations.
Though the balance sheet has improved, shareholders are still waiting for dividends. Swartz recently said the board withheld a payout for a second time out of “an abundance of caution” and is considering a share buyback instead.
He also warned that the next phase of the SAP rollout remains the single biggest risk to the recovery, saying it needs to be the next biggest focus.
The board said Spar’s strategy remains unchanged — to strengthen the Southern Africa business, improve margins, deleverage the balance sheet and simplify the portfolio.
Update: February 22 2026
This story has new information.
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