Sheraton Textiles pursues a strategic equity partnership, as revealed by the IDC's search for collaborator
Sheraton Textiles, a long-established designer and manufacturer of fine household linen and accessories, is currently in the process of searching for a strategic equity partner [1][2]. This move is part of a broader strategy to effect a turnaround, addressing challenges faced by the company and leveraging an equity partnership for renewed growth.
The Industrial Development Corporation (IDC) is actively seeking a strategic equity partner for Sheraton Textiles as of early August 2025. The company, founded in 1920, has been experiencing poor trading conditions and has been unable to generate profits since the pandemic [6].
The challenging economic environment has been exacerbated by Sheraton Textiles' reliance on retail clients who have been trading below expectations due to adverse economic conditions [7]. To address this over-reliance, the turnaround plan for Sheraton Textiles aims to diversify its customer base [8].
In 2009, the IDC initially invested in Sheraton Textiles as part of a business rescue process [9]. Since then, the IDC has continued to support the company, investing R1,6-billion to support employee stock ownership plans (ESOPs) and their related worker and community trusts [3]. In May 2024, the IDC invested R140-million into a state-of-the-art production facility at Sheraton's Diep River plant [4].
Ebrahim Patel, then Minister of Trade, Industry and Competition, stated that this investment aligns with the government's localisation and industrialisation initiatives [5]. The IDC has also established 110 workers and 45 community trusts, including 24 community trusts funded under the Renewable Energy Independent Power Producer Procurement Programme [3].
Notably, the IDC has approved the sale of a 15% share in the company to a newly established workers' trust for a nominal amount [2]. The Sheraton's workers' trust has been registered, and the transfer of shares was imminent, according to the IDC's 2026 Annual Performance Plan [10].
However, Sheraton Textiles' management implemented a turnaround plan, but it has not delivered the intended results as the company continues to generate losses [11]. The IDC approved R21,4-million in funding for the turnaround plan [12]. The specific elements of the turnaround plan beyond the search for an equity partner have not been publicly disclosed.
As of August 2025, no specific partner or deal has been publicly announced yet [1][2]. The partnership ambitions align with efforts to support the company’s financial and operational restructuring. Further developments or announcements on Sheraton Textiles' turnaround execution or partner identification have not yet been reported.
- The Industrial Development Corporation (IDC) is seeking a strategic equity partner for Sheraton Textiles, a move aimed at supporting the company's financial and operational restructuring, as part of a broader strategy for renewed growth.
- The localisation and industrialisation initiatives of the government, as stated by Ebrahim Patel, the Minister of Trade, Industry and Competition, align with the IDC's investment in Sheraton Textiles.
- Beyond the search for an equity partner, the specific elements of Sheraton Textiles' turnaround plan have not been publicly disclosed.
- The IDC approved funding for Sheraton Textiles' turnaround plan, reflecting their ongoing commitment to the sustainability of the business industry, particularly in the retail sector.
