SPAR is undergoing a leadership change at board level after chairman Mike Bosman and deputy chair Shirley Zinn resigned with immediate effect earlier today.
The departures come as the retailer works through a period of financial and operational pressure, with the group also preparing to find permanent replacements for the two senior board positions.
BusinessTech reports that SPAR’s most recent interim results showed modest revenue growth for the period ended 27 March, but headline earnings per share (HEPS) fell by 53%.
New leadership takes over
Lwazi Koyana, an independent non-executive director and chair of SPAR’s Risk Committee, has been appointed interim chairman with immediate effect.
Koyana, a chartered accountant who has served on SPAR’s board for more than seven years, will also chair the Nominations Committee while the company searches for permanent appointments.
The retailer said the succession process has already begun, with prospective non-executive directors being assessed against a skills matrix that includes retail, independent-retailer and broader industry experience.
SPAR said both Bosman and Zinn had concluded that leaving the board was in the company’s best interests.
Bosman became chairman in December 2022, during a period when the retailer was dealing with governance concerns. He later served as executive chairman between January and October 2023, providing continuity after former group CEO Brett Botten’s retirement.
Zinn joined the board in February 2023 and became deputy chair four months later. She also chaired the remuneration committee, where she oversaw changes including malus and clawback provisions and revised minimum shareholding requirements for executives.
The board said the two directors continued to have its support, while acknowledging the wider circumstances surrounding their departure.
‘Under his chairmanship, the group’s governance, risk and control environment has strengthened, the portfolio simplified and operational continuity restored,’ the board said of Bosman’s tenure.
The leadership changes come against a challenging backdrop for the retailer, SPAR’s latest interim results showed revenue increases, but HEPS declined sharply, highlighting the pressure facing the group as it works to improve the performance of its retail operations.
Moneyweb reported that the board has reaffirmed its support for CEO Reeza Isaacs, CFO Megan Pydigadu and the wider executive team, with the company’s turnaround strategy and current financial guidance remaining unchanged.
The retailer said its focus remains on restoring profitability among retailers, improving wholesale and distribution performance and making greater use of its independent Guild retail model.
The changes at the top have also triggered an immediate restructuring of SPAR’s board committees, as the Audit Committee will be chaired by Funke Ighodaro, while Liesbeth Botha will lead the Remuneration Committee.
Koyana will chair the Nominations Committee, while Sundeep Naran will head the Social, Ethics and Sustainability Committee. Botha will also chair the Business Transformation Committee.
The Risk Committee will be chaired by Ighodaro.
The leadership changes have also coincided with renewed pressure on SPAR’s share price.
SPAR shares touched a 52-week low on Monday, falling to R42.55, representing a decline of roughly 60%, according to Moneyweb.
The company has stressed that its day-to-day executive leadership remains in place, with Isaacs continuing as group CEO.
With a formal search now under way for new non-executive directors, the coming months will provide a clearer picture of how the board’s new structure will support SPAR’s efforts to improve retailer profitability and strengthen its wholesale and distribution operations.
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