Spur Corporation loses rib production case.
Image: Suppled
Spur Corporation has been dealt a blow in its long-running dispute with GPS Food Group RSA, after an arbitrator ruled against one of its subsidiaries.
This comes even though Spur had previously told shareholders the case was unlikely to succeed.
Spur Corporation owns the restaurant brands Spur Steak Ranches, Panarottis Pizza Pasta, RocoMamas, and John Dory's Fish, Grill & Sushi, as well as the upmarket brands The Hussar Grill, Casa Bella, Nikos Coalgrill Greek, Doppio Zero, Modern Tailors, and Piza ē Vino.
In its 2024 annual report, Spur said its legal team had reviewed the matter and concluded it was “more likely than not” the group would be able to defend the claims, and that the probability of losses was “not likely”.
No liability was raised in its accounts for the year to end-June.
The fight stems from a summons served in December 2019.
GPS, a subsidiary of a global supply chain business, said an oral agreement had been reached with Spur to set up a joint venture for a rib processing facility.
Although no written contract was ever signed, GPS claimed Spur repudiated the agreement, giving rise to damages.
It also lodged an alternative monetary damages claim, saying Spur’s conduct showed it regarded itself as bound by the deal, causing GPS to act to its detriment.
As of 2023, GPS was seeking between R119.9 million and R167 million under Claim A, or about R95.8 million under an alternative Claim B.
Spur denied that any binding agreement existed, saying any venture would have needed board approval and written contracts, which never materialised.
GPS Food Group is a global manufacturing business that provides global procurement, supply chain management, and brand management services involving meat protein products.
The matter was referred to arbitration in October 2023 and closing arguments were heard in August and September 2024.
Despite Spur’s confidence, the arbitrator has now found in favour of GPS on Claim A, it said in a notice to shareholders. The size of the damages still needs to be determined, and Claim B has not been adjudicated.
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