Historic South African company crawling out of business rescue

Tongaat Hulett Limited is making progress with its Business Rescue plan, with the sugar giant appointing a new CEO to see it through the last mile of the process.

Tongaat Hulett’s history dates back to 1892, when the Tongaat Sugar Company was founded in Hulett’s sugar business. Over the years, the company expanded into an international agricultural powerhouse.

However, the company ran into significant problems over the past few years, entering voluntary business rescue in October 2022 amidst high debt levels and alleged financial misstatements under its previous leadership.

This only affected the South African business, as Tongaat Hulett’s Botswana, Mozambique, and Zimbabwe sugar operations were not financially distressed and are funded independently.

In January 2024, the company’s business rescue plan was approved by over 98% of the group’s creditors.

Under the plan, a consortium, Vision Investments, is set to acquire all of the assets of Tongaat Hulett and is buying most of the embattled sugar producer’s R8.5 billion debt, converting most of this into equity.

In the latest development, the group announced the appointment of Gavin Dalgleish as Chief Executive Officer, effective 1 June 2025.

The appointment marks an importantt step in the final phase of implementing the Business Rescue Plan, setting the stage for a seamless transition of the business assets and staff to Vision Investments.

Dalgleish has been appointed by the Business Rescue Practitioners (BRPs) to the company’s management team, but not as a director, to assist with the rescue.

Tongaat said that his leadership will be critical in facilitating the complex transaction and ensuring continuity and stability as the group moves into its next chapter.

The new CEO has sector experience, having already worked in the sugar industry, and is particularly strong in stabilising, turnaround, and strategic diversification of sugar businesses, Tongaat said.

He was recently appointed as the CEO of the Vision Group in April 2025.

He will resume that role once the asset transaction, which includes the sale of Tongaat’s business and assets as a going concern, is concluded.

Tongaat said that implementing the Business Rescue Plan is progressing well, with Vision having settled all outstanding obligations to the Lender Group in May, while the asset transfer is imminent.

“This leadership transition, together with the steady implementation of the Business Rescue Plan, reinforces the commitment to securing Tongaat Hulett’s long-term survival,” said the group.

It added that the process is not only about restructuring the business, but also about preserving thousands of jobs and sustaining the livelihoods of farming communities.

Survivors

Tongaat looks set to join a set of major South African companies that escaped business rescue.

This includes AutoZone, which, after entering business rescue due to struggles to pay its debts, was purchased by JSE-listed Metair for R290 million.

Under its new ownership, AutoZone has introduced a fit-for-purpose funding structure, with a renewed customer focus and strategic alignment with the Independent Aftermarket (IAM) sector.

Moreover, after starting business rescue proceedings in May 2024, West Pack is also seeing signs of life.

The company faced severe cash flow problems due to its rapid growth and need for inventory, limiting its ability to pay its debts when they became due.

A group of individual buyers purchased West Pack, and the previously founder-owned corporate stores were sold to a particular investor. 

These previous corporate stores will become part of the franchise network, which remained robust during the business rescue proceedings. 

West Pack plans to expand its franchise model, focusing on strengthening the brand in regions with limited or no exposure.