Spur Corporation has suffered a setback in the ongoing GPS Food dispute, with an arbitrator finding against the restaurant group in a case worth hundreds of millions of rand.
Spur Corporation found liable in arbitration
The company confirmed the part award on Wednesday, 27 August 2025.
According to Spur’s update to shareholders, the arbitrator ruled in favour of GPS Food Group, a South African subsidiary of the global company, on the merits of its main damages claim.
However, the actual amount of money Spur might have to pay — known as the quantum of damages — has not yet been decided.
What the dispute is about
The legal battle began after GPS Food Group claimed that it had an oral (spoken) agreement with Spur to set up a joint venture. A joint venture is when two companies agree to work together on a business project and share profits or losses.
GPS argued that the failed deal caused it financial harm. Its main claim, called Claim A, asks for damages between R119.9 million and R167 million, depending on how the losses are calculated.
An alternative claim, Claim B, asks for around R95.8 million, alleging other financial losses.
The arbitrator found in favour of GPS on Claim A but has not made any ruling on Claim B.
Spur said it plans to appeal the ruling within 30 days, as allowed under the arbitration agreement.
An appeal in arbitration is handled by a panel of three arbitrators, and their decision is final. Once that panel rules, there is no further right to appeal.
In its statement, Spur said:
“Supported by the opinion of its legal advisors, the board considers that the probability of the occurrence of the claimed losses, at this point in the legal proceedings, is therefore not likely.”
The company stressed that its financial health remains stable, saying the ruling does not affect its cash reserves (liquidity) or dividend payments to shareholders.
Spur Corporation’s share price on the Johannesburg Stock Exchange (JSE) fell after the news, according to Moneyweb. The stock dropped 1.05% from R38.00 per share to R37.60 per share. Earlier in the day, before the announcement, the shares had traded as high as R40.20.
This shows that investors reacted negatively to the ruling, as the case could result in Spur having to pay large sums in damages.
