Capricorn Society has announced it is ceasing its operations in the Republic of South Africa (RSA) and trade credit will not be provided beyond 14 March 2014. All affected Capricorn members, suppliers and employees in South Africa have been told of the decision.
Capricorn Society Group Chief Executive Officer, Greg Wall, said: “The decision to cease operating is a painful one but was only made after all other possible alternatives were exhausted. Capricorn would need to make significant further investment in computer systems, processes and of capital if it wanted to maintain and grow its RSA business. Such investment cannot be justified on behalf of all Capricorn Members, including those in Australia and New Zealand, based on historical or expected future performance.
“I would like to thank the Capricorn Members and Preferred Suppliers so far for their understanding regarding this decision. We have been advised that many have already started to make alternative arrangements to assist with a smooth transition. I would also like to re-assure Members that their investment in Capricorn is secure. All of their shares and reward points will be paid to them. Capricorn has also always guaranteed Supplier payment and although we have made this difficult decision to cease operations, that commitment remains steadfast.”
Capricorn will make an orderly and planned transition from its RSA operations. It will remain in RSA well into the future as part of this commitment. All RSA Members will have their Member entitlements re-paid to them after their final statement has been settled and all payments due to RSA Preferred Suppliers will also be made.The transition will be made in a way that protects the interests of Members, Preferred Suppliers and Capricorn. Importantly, Capricorn will be doing everything it can to ensure the transition is as smooth as possible for Capricorn RSA Members, Preferred Suppliers and employees.
The office will remain open and staffed until May 2014 to assist Members and Suppliers transition and make new business arrangements. Capricorn Head Office in Perth will then manage Capricorn’s operations from that point.”