Dion Wired closes all stores with immediate effect

March 19, 2020
March 19, 2020 Tumelo Moloi

Dion Wired is closing its stores with immediate effect, the company has announced. Dion Wired’s website also states it is “closed for business”.

An FAQ page on Game’s website – Dion Wired’s sister company – provided further details on the closure.

“All Dion Wired stores will cease trading at 18:00 on 19 March 2020. Online shopping on www.dionwired.co.za will close at 8:30 on 19 March 2020. But you can still get all your favourite brands at Game.”

This follows Massmart, which owns Dion Wired, announcing on 13 January that it had started consultations with workers’ unions over possible retrenchments at the company.

“The Massmart Group has recently conducted a store optimisation project that highlighted a number of underperforming stores in its portfolio,” Massmart said.

“Consequent to this project, the Massmart Group seeks to advise shareholders that Massmart has commenced a potential store closure consultation process in terms of section 189 and section 189A of the Labour Relations Act.”

Bloomberg later reported that the plans involved closing Dion Wired’s 23 stores and 11 Masscash wholesale outlets, potentially affecting 1,440 employees.

Dion Wired

Empty shelves

A visit by MyBroadband to several Dion Wired stores in Gauteng at the start of the month revealed that stock levels were already an issue at the retailer.

In all three stores we visited, there were early signs of supply restrictions and only a few customers were browsing the shelves.

The floor stock of general accessories appeared adequate, but big spaces were left open in areas where larger appliances and electronic gadgets were normally displayed.

We also spoke to several employees about how they were feeling about potential job cuts and their daily routine at the stores.

One staff member told MyBroadband that the employees were uncertain as to what was going to happen next. He said they had not been informed of any closure dates and were still awaiting updates.

Closing down stores and job cuts

Massmart’s plan to cut jobs across the company has a focus on Dion Wired and Masscash outlets.

According to Massmart’s website, its Masscash division consists of the following stores:

  • Jumbo Wholesale
  • Jumbo Shield
  • Rhino Cash and Carry
  • Cambridge Food

Massmart operates a range of well-known retailers in South Africa in addition to the companies listed above.

These include the “Builders” stores, consisting of the Warehouse, Express, Trade Depot, and Superstore outlets.

source : https://bit.ly/2x5tOWm


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