Damages claim against Spur Corp nears finalisation

The multi-m i l l i o n-rand High Court damages claim instituted against JSE-listed Spur Corporation by an SA subsidiary of the global GPS Food Group appears to be inching its way towards finalisation. The claim was initially set down for trial from 23 October 2023 for a period of three weeks, but the parties agreed to refer the matter to arbitration. Spur said in its annual financial statements for the year to end-June 2024 released this week that the arbitration commenced on 23 October 2023 but was adjourned on 6 November 2023 until 21 February 2024. Moneyweb reports that the group said the matter proceeded and was further adjourned to 22 July 2024 until 26 July 2024, where the merits were finalised. It said the quantum claim would be heard on Tuesday and the closing argument in September 2024. The damages claim relates to an alleged oral agreement concluded between the GPS Food Group and multi-brand restaurant franchiser Spur Corporation in terms of which the parties would, inter alia, establish a joint venture to acquire, develop and manage a rib processing facility.

GPS Food Group established a rib supply and processing facility after acquiring premises in Cape Town in 2017. The damages claim comprises alleged capital expenditure, start-up losses and projected operating losses for a five-year period ended November 2022. It is believed the intention was that the facility would be an exclusive supplier to Spur Corporation and its franchised outlets. However, the facility stopped production in 2020, with the premises and the assets subsequently sold and the remaining staff retrenched. Spur Corporation this week said its attorneys, together with senior counsel, assessed and presented a review of the merits of the case and prospects of success, and based on the information available to them, concluded that it is more likely than not that it will be able to successfully defend the claims. Moneyweb has been unable to obtain comment from GPS about its dispute and damages claim.