Accelerated growth path put a strain on West Pack Lifestyle's cash flow.
West Pack Lifestyle has taken accountability for its actions, which led to financial difficulties and ultimately resulted in entering business rescue.
The retailer entered business rescue in mid-2024, but within six months, the brand had found a rescuer to restore it to its former glory.
Chris Da Silva, Director of West Pack Lifestyle, has outlined the company’s new strategy to ensure the brand does not find itself experiencing financial difficulties.
West Pack Lifestyle is related to seven other companies, such as West Pack Lifestyle Distribution; West Pack Franchise, Petzone and Petzone Franchise.
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Retail needs resilience
“Retail is not for sissies,” said Da Silva. He acknowledged that the company grew too quickly and has learnt from that.
The retail chain was established in 2008 and has been on an accelerated growth path, which has put a strain on the group’s cash flow.
Trouble for the retailer started after the Covid-19 pandemic. Challenges experienced include “the economic aftermath of Covid-19 and an accelerated expansion strategy that stretched the business too thin”.
Retail franchise model
West Pack Lifestyle is moving to a franchise model, which will grow the brand’s visibility. “By moving to a franchise model, we are giving entrepreneurs the opportunity to own and run their stores while keeping the brand strong, resilient, and agile.”
Da Silva added that West Pack Lifestyle has 40 operational stores in South Africa and are trading under the franchised model. There are plans to open three more by the end of the year.
Each franchise is capped at a maximum of five stores per owner, a decision designed to keep businesses manageable and closely aligned with the group’s ethos of personal, owner-driven retail.
“We have to slow down to grow again, and this model ensures that if one store experiences difficulty, it doesn’t compromise the entire business.”
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Business rescue
Former director and CEO Jose da Silva said he has hope that through business rescue, the company’s turnaround would improve.
He believed the company could make money again through the exploration of various offers to acquire either the assets or the business of the group; improved procurement procedures and achieving optimal stock levels and product mix, reduction of overhead expenses, and restructuring.
Ultimately, West Pack Corporate stores were sold to an individual investor during the business rescue process. West Pack Franchise was acquired by a new group of individual buyers earlier in 2025.
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