JOHANNESBURG - Retail group Massmart said on Monday it had commenced a consultation process in terms of the Labour Relations Act which could see the closure of 34 stores and affect 1440 jobs.
"The Massmart Group has recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio," Massmart, whose parent company is US multinational retail corporation Walmart, said in a brief statement.
Massmart owns brands such as Game, Makro, Builder’s Warehouse, Cambridge Food, Dion-Wired, Jumbo and CBW. It said the ongoing process would affect Dion-Wired and Masscash outlets.
In July 2019 Massmart Holdings' share price declined by more than 17 percent on the JSE after the group said it expected to report a decline in earnings across all of its four divisions for the six months to end June, mainly impacted by losses in Massdiscounters.
It was reported that the group's losses were expected to widen to R395 million and R425 million compared to last year’s loss of R95m.