Directors resign as retailer seeks fresh leadership

South African retailer SPAR Group has announced the resignation of both its chairman, Mike Bosman, and deputy chair, Dr Shirley Zinn, from the board with immediate effect. 

Since the news broke on Monday morning, BizCommunity has reported that insider Lwazi Koyana has been appointed interim chair while the company searches for a permanent replacement.

SPAR said Bosman had stepped down as independent non-executive director and chairman effective 17 August, with Zinn resigning from her role as independent non-executive director and deputy chair on the same date. 

The board said both directors retained its full support, but had separately concluded that stepping aside was the right decision for them and in the company's best interests, taking into account the difficult period recently experienced by the directors and the board.

The leadership changes come as SPAR continues to focus on strengthening governance, improving retailer profitability and driving operational performance under group chief executive Reeza Isaacs.

News of the departures weighed on the stock, with SPAR shares down 5.68% to R42.71 by the morning of 17 August.

The resignations come as SPAR continues working to stabilise after a turbulent stretch marked by management upheaval, rising debt levels and operational strain in parts of the business.

Bosman took over as chairman in December 2022, during a particularly challenging period for SPAR following previously reported governance issues.

Following the retirement of the group's former chief executive, he also served as executive chairman from January to October 2023, providing leadership continuity during the transition. 

SPAR credited Bosman with strengthening the group's governance, risk and control environment, simplifying its business portfolio, restoring operational continuity, and maintaining ongoing engagement with shareholders and investors throughout his chairmanship.

Zinn joined SPAR's board in February 2023 and was appointed deputy chair in June that year. As chair of the Remuneration Committee, she played a key role in strengthening remuneration governance, including introducing a malus and clawback policy for executive management and revising minimum shareholding requirements. 

She also served on the Nominations and Social, Ethics and Sustainability Committees, where she contributed to board renewal and initiatives focused on transformation, ethical conduct and inclusion, BizCommunity reported.