The chairperson and deputy chair of wholesaler Spar Group have resigned and an interim chair has been appointed until a permanent one can be found.
The group said on Monday that Mike Bosman has tendered his resignation as chairperson and independent non-executive director with immediate effect.
In addition, Shirley Zinn has resigned as deputy chairperson and independent non-executive director, also with immediate effect.
Lwazi Koyana, an independent non-executive director and chairperson of Spar’s risk committee, has been appointed interim chairperson pending the conclusion of a permanent succession process to be led by the nominations committee.
“While Mr Bosman and Dr Zinn continue to have the full support of the board, taking into consideration the context of the period both these directors and the board have recently experienced, Mr Bosman and Dr Zinn have separately concluded stepping down and resigning from the board is the right decision for them and in the best interest of the company,” Spar Group said in a statement on Monday.
The resignations are the latest in a series of woes for the embattled retailer, which is focused on a major turnaround under its new CEO.
The turnaround involves rolling out cost-cutting measures, including voluntary retrenchments, and resolving broader operational and structural pressures, including governance matters and past system disruptions, while continuing efforts to stabilise the business and execute its strategy.
In May, Business Day reported Spar had rejected a call by its retailer base to remove Bosman, despite a formal petition citing a “serious and collective loss of confidence” in his leadership.
The petition, submitted on May 8 by elected representatives of the Spar National Council after a meeting with group executives led by CEO Reeza Isaacs, called on the board to request Bosman’s resignation with immediate effect.
Spar operates more than 13,800 branded stores across 48 countries on four continents.
The retailers said the call was prompted by rising concerns about the group’s performance and growing tension between the board and the independent store network.
They claimed Bosman had come to be associated with a period of operational difficulties and reputational damage at the group.
They added the request was not personal but was aimed at restoring trust and stability within the voluntary trading model that underpins Spar’s operations.
In response, Spar told Business Day it had received and considered the petition, but said it would continue to back Bosman.
The group at the time said Bosman provided leadership during a difficult period and emphasised the need for stability as the group worked through ongoing challenges.
Bosman was appointed chair in December 2022, at a time of exceptional difficulty for the group due toserious governance matters previously reported to shareholders, the group said on Monday.
“Following the retirement of the previous group CEO in January 2023, Mr Bosman agreed to serve in an executive capacity as executive chair until October 2023, providing continuity of leadership at short notice and at significant personal commitment.
“Under his chairmanship, the group’s governance, risk and control environment has strengthened, the portfolio simplified and operational continuity restored. Throughout his tenure, Mr Bosman engaged openly with shareholders and made himself consistently available to them. His measured, ethical and accountable approach at a difficult time for the group has been valued by his fellow directors, shareholders and investors,” it said.
Zinn joined the board as an independent non-executive director in February 2023 and was appointed deputy chair in June 2023.
“As chair of the remuneration committee, she was central to strengthening the group’s remuneration governance and led the introduction of a malus and claw back policy for executive management and a revised minimum shareholding requirement to align with shareholder expectations and market practice.
‘Through her service on the nominations and social, ethics and sustainability committees, she contributed materially to the board renewal process and advocated for transformation, ethical conduct and inclusion, helping to drive initiatives that advance a more inclusive workplace,“ it said.
The board reaffirmed “its full and unqualified support” for CEO Isaacs, CFO Megan Pydigadu and the executive team, it said.
The group’s turnaround strategy and current guidance remain unaffected by these changes, it said.
Business Day
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