Massmart points to likely closure of Game stores in East and West Africa
Makro and Builders owner Massmart says that plans to sell its Game store portfolio in East and West Africa have not delivered a “meaningful outcome” and will likely all be closed in due course.
The group announced in December that it had identified 15 Game stores for possible sale in South Africa, while it had identified eight stores for closure in various parts of the country.
Retail giant Walmart announced last month that it wants to buy the remaining shares in Massmart – having initially acquired a 51% stake in the South African business in 2010 – and take the business private.
“Shareholders are referred to the Integrated Annual Report for the year ended 26 December 2021, where Massmart disclosed in the notes that, following a review of its Game store portfolio in East and West Africa, it was exploring the possible disposal of the East and West African stores to local investors and entrepreneurs with a more intimate understanding of regional and local market conditions,” Massmart said in a statement on Wednesday (5 October).
“As a result, Massmart initiated a process over a 12-month period to investigate, as a preferred option, the opportunity to sell our East and West African stores to local investors. Unfortunately, this initiative did not deliver a meaningful outcome,” it said.
The group said it has initiated potential store closure consultations with staff members in its Game stores in East and West Africa.
News24 reported last month that some 700 employees could potentially lose their jobs following the closure of the eight stores currently in progress.
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