Sheraton Textiles hunt for strategic equity ally, as per IDC's recent decision

Textile pioneer Sheraton seeks strategic investment partner, according to IDC report by Staff Writer. Established in 1920, high-end linen and accessory manufacturer Sheraton Textiles eye potential equity partnership.

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2025 August 27 . 4:11 PM

2 min read

Investment giant IDC is on the hunt for a key partner to bolster the financial position of Sheraton... — Investment giant IDC is on the hunt for a key partner to bolster the financial position of Sheraton Textiles through strategic equity collaboration.

Sheraton Textiles hunt for strategic equity ally, as per IDC's recent decision

Sheraton Textiles Seeks Strategic Equity Partner Amid Financial Challenges

Sheraton Textiles, a South African textile company with a rich history dating back to 1920, is currently in search of a strategic equity partner. The Industrial Development Corporation (IDC) is actively involved in this process, aiming to find a partner that can provide the necessary capital, expertise, and access to new markets to strengthen the company's position [1][2][3].

The financial struggles of Sheraton Textiles have been evident in recent years. The company reported a net loss of R16-million for the 2024 financial year, following a loss of R23m in 2023 [4]. To address these challenges, the IDC has approved the sale of a 15% share in the company to a newly established workers' trust for a nominal amount [5].

In an effort to improve financial performance and diversify its customer base, Sheraton Textiles has been seeking a strategic equity partner. However, specific measures or initiatives taken for financial performance enhancement or customer diversification in recent months remain unclear from the available information as of August 2025 [1][2][3].

The challenging economic environment, exacerbated by Sheraton's reliance on retail clients who have been trading below expectations due to adverse economic conditions, has been a significant factor in the company's financial struggles [6]. To counteract this, the turnaround plan for Sheraton Textiles aims to diversify its customer base and looks at improving efficiencies and exploring cost savings [7].

The IDC has been supporting Sheraton Textiles since 2009, initially investing in the company as part of a business rescue process [8]. In May 2024, the IDC invested R140-million into a state-of-the-art production facility at Sheraton's Diep River plant [9]. Despite the implementation of the turnaround plan by Sheraton's management, the intended results have not been achieved, as the company continues to generate losses [10].

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 [11]. Furthermore, the IDC has invested R1,6-billion to support employee stock ownership plans (ESOPs) and their related worker and community trusts [12].

As Sheraton Textiles continues its search for a strategic equity partner, the focus remains on finding an investor who can provide the necessary resources to help the company navigate its financial challenges and secure a sustainable future.