Struggling South African retailer West Pack has been acquired by a group of buyers, marking a turning point after more than a year in business rescue. The deal secures the future of the brand and its network of stores, offering hope for recovery after financial difficulties. Legal adviser Michael Hartman confirmed the sale, stating that it ensures stability and a renewed focus on growth and customer service. The company’s franchise division, which includes 66 independently owned stores, maintained strong customer loyalty despite its financial troubles.
West Pack’s financial struggles stemmed from an aggressive expansion strategy that led to unsustainable debt levels. The company, which includes brands like West Pack Lifestyle, Petzone, and Café Estreito, entered business rescue in May 2024 due to unpaid leases and mounting creditor pressure. The corporate division, which owed over R118 million to banks and investors, was sold separately in April. Despite these challenges, the business rescue process saved more than 1,100 jobs, preventing a complete collapse of the retail chain.
Moving forward, West Pack plans to strengthen its franchise model, with new investment aimed at restocking stores and improving operations. The company is also exploring opportunities for new franchisees, offering competitive deals to expand its presence in underserved regions. CEO Jose Da Silva had previously admitted that rapid growth outpaced financial controls, leading to cash flow strain and inventory mismanagement. With new ownership in place, the brand now has a chance to rebuild and refocus on sustainable growth.