![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Gareth-Ackerman-1.jpg\")
<\/a>After Summers\u2019 return, Pick n Pay embarked on a turnaround strategy, which included bringing back former executives, closing struggling stores, and rolling back its Qualisave store strategy.<\/p>\n\n\n\n
Although the strategy looks easy on paper, Summers said it is incredibly challenging with many moving parts.<\/p>\n\n\n\n
\u201cThere has never been a company in South Africa\u2019s history which had to jump as many hurdles as us this year,\u201d he said.<\/p>\n\n\n\n
Pick n Pay had a highly complex lending group, with eleven banks wanting their pound of flesh, which had to be dealt with.<\/p>\n\n\n\n
\u201cDealing with the eleven-bank lending group had complexities in and of itself,\u201d Summer told Classic Business.<\/p>\n\n\n\n
On the back of dealing with the banks, Pick n Pay had to prepare for a rights offer through which it plans to raise R4 billion.<\/p>\n\n\n\n
The company is also planning to list its subsidiary Boxer. It hopes to raise between R6 billion and R8 billion from the Boxer IPO.<\/p>\n\n\n\n
The goal of the dual-capital-raise strategy is to solve the short-term debt problem, get more working capital, and reduce long-term debt.<\/p>\n\n\n\n
Following the rights offer and the Boxer listing, Pick n Pay should have raised enough money to address \u201csquare off its debt and be done with the lender group\u201d.<\/p>\n\n\n\n
All of this happened while Summers and his team were preparing a business plan to improve Pick n Pay\u2019s fortunes.<\/p>\n\n\n\n
\u201cWe have had many issues to deal with. We crossed these hurdles one at a time,\u201d the 70-year-old Summers said. \u201cIt has certainly been an interesting six months if one can put it mildly.\u201d<\/p>\n\n\n\n
He credited the endurance, loyalty, and courage of Pick n Pay employees for what they have achieved so far.<\/p>\n\n\n\n
\u201cOrdinary people achieving the extraordinary is our mantra at the end of the day,\u201d Summers said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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