Although yet to recover from Edcon’s woes, Retail landlords are set to face even more intense pressure as Walmart-owned Massmart announced the closure of 23 Dion Wired stores as from today.
Massmart gave a notice to shareholders that 23 Dion Wired stores will stop trading from today. It will still decide whether it will close 11 non-performing Masscash stores, the notice read.
The Massmart Holdings group includes Game, Makro, Dion, Builders and Jumbo Cash and Carry.
The company, which also owns the South African chains Game and Makro, slumped to a loss in the first half of last year as shoppers stayed away amid an economic downturn.
Massmart cut its full-year dividend by 40% last year and scrapped its interim dividend. The stock has more than halved in value over the past 12 months, the worst performer of the 13 stocks on the FTSE/JSE Africa General Retailers Index.
Massmart has a total of almost 450 stores across 13 countries in sub-Saharan Africa and about 48,500 full-time employees.
Source: SA Commercial Property News http://www.sacommercialpropnews.co.za/property-companies-news/9249-end-of-the-road-for-massmart-dion-wired-stores.html