Employees at 55 Dominos Pizza locations across South Africa will be left jobless as the pizza joint closes its doors in the country.
Taste Holdings, owner of Starbucks and Dominos, has announced plans to liquidate its food businesses in the country with immediate effect. This decision comes after they failed to find a buyer for the Dominos licence in South Africa amid the country’s second recession in two years.
In November 2019, Taste Holdings sold Starbucks to Rand Capital Coffee, and also found buyers for other brands Maxi’s and The Fish & Chips Co. However, failure to find a buyer for Dominoes has led them to the decision to voluntarily liquidate.
“Domino’s Pizza LLC [the US franchise company] provided financial support and assistance during this period. Unfortunately, a deal could not be concluded on terms acceptable to all parties and further financial support was not provided by DP. As a result, it was decided to place the respective entities into voluntary liquidation,” the company explained in a statement.
Fifty-five Taste Holdings corporate stores will close with immediate effect, affecting 770 employees. The 16 franchised outlets will continue trading with management providing advice and assistance where possible. There is currently no date mentioned as to when the franchising licence will be terminated.
Picture: Pixabay