Spur to appeal after order to pay GPS Food R75m in damages

GPS Food Group is set to receive R74.6 million in damages from Spur Corporation, with interest added, according to an arbitration ruling. The company had been facing a dispute with GPS since 2019, leading to an arbitration hearing in October 2025. The original claim by GPS ranged between R119.9 million and R167 million, representing accumulated counterfactual profits less actual losses for a joint venture lasting between five and 15 years.

Spur argues that it will appeal the entire award, citing its senior counsel's advice that the group is likely to succeed. The arbitration panel will review the appeal in February 2027, with the final decision becoming binding at that point. The group has set aside R129.5 million in provisions to cover legal costs, including R6.5 million already spent.

An alternative claim brought by GPS against Spur and its former CEO, Pierre van Tonder, was dismissed. Van Tonder, however, passed away by suicide in May 2021 after stepping down as CEO in December 2020. This claim, based on alleged misrepresentation in the joint venture agreement, was rejected by the arbitrator.

At the core of the dispute, Spur denies the validity of an oral agreement reached between them and GPS regarding the supply of products. Spur maintains there was no executed written agreement. The arbitration proceedings, which lasted until December 2024, involved the appointment of experts to resolve discrepancies in the parties' calculations. GPS later raised its damages claim to R233 million, while Spur's expert estimated GPS's claim should be around R116 million.