SOUTH AFRICA – Gold Brands, a South African fast food chain has announced the resignation of its chief executive and co-founder Praxia Nathanael.
Nathanael is a co-founder of Gold Brands and its flagship brand ChesaNyama as well as the pioneer of in The Fish & Chips Co – which was acquired by Taste Holdings in February 2012 for US$4.47 million (R65m).
A report by Business Day reveals that Gold Brands said Nathanael’s resignation comes as part of the group’s ongoing restructuring programme.
Nathanael’s departure follows the resignations of nonexecutive directors Rowan Fortuin last September and Christos Kassianides last December and Gold Brands shares’ suspension since early August last year.
The shares of the Johannesburg Stock Exchange (JSE) listed firm were suspended following delayed delivery of its annual financial report which has subsequently prompted the bourse to apply for termination of Gold Brands listing on April 29.
Listed in 2016, Gold Brands released its financial results for the year ended 2018, as the last set of results, in which it generated a gross profit of US$1.03 million (R15m) and revenues of US$2.75 million (R40m).
In February this year, the group announced that it had entered into an agreement with Laudium Future Equity for the sale of its flagship brand, ChesaNyama, for about US$960000 (R14m).
Laudium was also involved in buying the Black Steer steakhouse brand from Gold Brands last year in June.
If the sale of the ChesaNyama chain goes through, there will be staggered payments of R1m when the deal is signed, another R6.25m (US$430 000) on the closing date and R2.5m (US$170 000) 30 days after the closing date.
Two more payments of R4 million (US$275200) will be made 60 days and 90 days after the closing date, in a move that seeks to increase the group’s cash flow, settle
The company said its future focus would be on the restaurant and casual dining segment, spearheaded by the recently acquired North Sea restaurants brand.
Gold Brands set foot in South Africa’s fast food market about a decade ago spearheaded by ChesaNyama, and has since then grown into a chain of more than 300 franchise stores.