After almost six decades, the Ackerman family will give up control of Pick n Pay.
The retailer announced on Monday that Ackerman Investment Holdings (AIH) will relinquish its majority stake in the business following a rights offer.
'AIH and its related and inter-related persons (the Ackerman family) agreed to forego majority shareholder voting control of Pick n Pay, with the exact mechanism still to be finalised, such that their voting rights will fall slightly below 50% post the planned rights offer,' the group said in a statement.
The family will also give up the right to nominate the chairman, CEO and chief financial officer immediately.
After fourteen years as chair, Gareth Ackerman will step down from the position next year. He, along with siblings Suzanne Ackerman and Jonathan Ackerman, will remain on the board.
Gareth Ackerman said in a statement that he felt it is 'the right time to hand over to new blood'.
'The Ackerman family has for some time been considering the changing operating environment and the need for renewal at Pick n Pay, including at board level. To quote a favourite expression of my father, 'We need to listen to the whispers of tomorrow'. The difficulty the business has found itself in recently has proved an opportune moment to accelerate the renewal process.'
On Monday, Pick n Pay reported a grim set of results for the year to end-February.
The group's trading profit declined by more than 87%, with its Pick n Pay stores suffering a R1.5 billion trading loss.
Its low-cost brand Boxer, however, posted R1.9 billion in trading profit.
The late Raymond Ackerman, who died in September last year, purchased the first four Pick n Pay stores in Cape Town in 1967.
The group quickly grew to become the country's biggest retailer, pioneering retailing firsts, including 'no name' food brands and in-store banking.
But in recent years its fortunes declined and it has seen a number of CEO changes as Shoprite became a domineering force in the market.
