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In February, it was learned that DionWired stores were bleeding money for their parent company, Massmart – this came just weeks after Massmart’s January announcement that the stores would be closing.
The initial statement from Massmart read “the Massmart Group has recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio”.
The retail group had been in talks with unions about store closures and jobs cuts.“About 1,440 employees could be affected, the Johannesburg-based company said in a statement,” reported Bloomberg.
“Massmart has a total of almost 450 stores across 13 countries in sub-Saharan Africa and about 48,500 full-time employees.”
While Massmart’s division for Game and DionWired were seeing sinking losses, other Massmart stores like Makro and Fruit Spot saw profits from $60-million and $40-million respectively.
Now, after almost three months in a death rattle, DionWired has shut its doors with immediate effect. The store’s official website has been replaced with a banner that reads “DionWired is closed for business – Please not you can still get all your favourite brands at Game”.
Mega-retailer Game is DionWired’s sister company, owned by Massmart as well, and is reported to also be trading at a loss with DionWired.
“All DionWired stores will cease trading at 18:00 on 19 March 2020. Online shopping on www.dionwired.co.za will close at 8:30 am on 19 March 2020. But you can still get all your favourite brands at Game,” reads a Q&A section on Game’s website, which also mentions that there will not be a clearance sale and for customers to take their business to Game for similar product catalogues.
DionWired customer services will also be taken over by Game which will be honouring orders, repairs and warrantees from DionWired purchases.
Edited by Luis Monzon
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