ReclaimHub — Company Overview & Corporate Structure
The corporate structure and the ownership and ring-fencing underpinning ReclaimHub.
Section 3 · Business Plan
Company Overview & Corporate Structure
The corporate structure and the ownership and ring-fencing underpinning ReclaimHub.
ReclaimHub Retail Group (Pty) Ltd is a Johannesburg-headquartered
company operating in circular-economy retail, consumer-goods trading and
pawn finance. It operates a hybrid model of corporate-owned flagship
stores and franchised outlets, supported by regional refurbishment hubs
and a central technology and valuation platform.
3.1 Legal and operating structure
To make the business bankable and to ring-fence the regulated lending
activity, the plan adopts a holding-company structure with
activity-specific subsidiaries. This separation is essential: the pawn
book is funded by a secured warehouse facility whose lenders require a
clean, bankruptcy-remote borrowing entity, while the retail operations
carry ordinary trade and equipment finance.
| Entity | Activity | Funding |
|---|---|---|
| ReclaimHub Group (HoldCo) | Group strategy, brand, franchising, shared services | Equity + corporate term debt |
| ReclaimRetail (Pty) Ltd | Corporate-owned stores, new-goods import, refurbishment | Equity + trade/equipment finance |
| ReclaimCredit (Pty) Ltd | Pawn lending book — NCA-registered credit provider | Equity lending pool + warehouse facility |
| ReclaimTech (Pty) Ltd | Valuation engine, POS/lending platform, marketplace | Equity (tech capex) |
| Franchise entities | Independently owned franchised stores | Franchisee capital + franchise support |
3.2 Franchise versus corporate economics
The hybrid model deliberately mixes corporate-owned and franchised
stores. Corporate stores capture the full retail and lending margin but
consume the group’s capital; franchised stores are capital-light for the
group — the franchisee funds fit-out and working capital — and generate
royalty and support-fee income, at the cost of a lower share of
store-level margin. The plan front-loads corporate ownership to prove
the format and control quality, then layers franchising from Year 2 to
accelerate the network without proportionate capital.
| Dimension | Corporate-owned | Franchised |
|---|---|---|
| Group capital per store | High (fit-out + WC) | Low (franchisee-funded) |
| Group share of margin | Full retail + lending | Royalty + support fees |
| Rollout speed | Capital-constrained | Faster, capital-light |
| Quality control | Direct | Via manuals, audits, valuation platform |
| Best used for | Flagship, lending-heavy sites | Density fill, township, nodes |
The pawn book is both the largest single asset (R3.8bn by Year 5) and
the activity that requires the most specialised, security-heavy funding.
Housing it in a dedicated NCA-registered subsidiary allows a warehouse
lender to take a first-ranking cession over the book and its receivables
without entangling the retail trading estate, and keeps the retail
business financeable on ordinary terms. It also isolates regulatory risk
under the National Credit Act to a single, purpose-built
entity.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of ReclaimHub Retail Group (Pty) Ltd.