Spar has announced the sale of its entire Swiss business, marking the end of a costly investment that has burdened the retailer’s balance sheet for several years. The transaction, valued at approximately CHF 46.5 million (around R1.03 billion), involves Tannenwald Holding acquiring full ownership of Spar Switzerland, along with the assumption of the unit’s debts.
This decision follows a strategic review of Spar’s European assets, during which the Swiss unit was classified as held for sale after a significant impairment. Despite operating more than 300 stores, 11 cash-and-carry outlets, and a distribution centre, Spar Switzerland failed to generate the expected returns since the company entered the market in 2016.
As part of the deal, Spar also settled a competition fine in Switzerland, enabling the group to remove all international guarantees from its balance sheet. This exit not only alleviates financial pressure but also strengthens Spar’s balance sheet by reducing debt and contingent liabilities.
The sale allows Spar to free up capital and resources, enabling the company to concentrate on its core markets, including Southern Africa, Ireland, and the UK. This move reflects Spar’s commitment to focus on areas where it can achieve better returns and strengthen its overall position in the retail sector.