Pick n Pay renegotiates debt ahead of its Boxer Brand's IPO.

South Africa's leading grocer, Pick n Pay, is in renegotiation talks with FirstRand over its loan commitment as it prepares for the IPO of its Boxer Brand.

The South African retailer has been facing financial challenges, which have affected its customer engagement and supply chain. It needs an urgent business turnaround, which has seen the return of Sean Summers as CEO last year.

Reuters reported that the company has lost market share to its rivals and has seen one of its franchises, the Baladakis Group, accumulate overdue debt, which is subject to legal proceedings. At the same time, it plans to spin off its famous Boxer brand in a likely oversubscribed IPO.FirstRand Bank Limited, through its Rand Merchant Bank division (RMB), will oversee the company's loan facilities for up to R1 billion.