Struggling former owner of Starbucks says it is going to voluntarily liquidate Domino’s Pizza because it has failed to find a buyer for the pizza franchise.
Taste Holdings [JSE:TAS] announced late in 2019 that it is exiting its food businesses (Starbucks, Domino’s Pizza Maxi’s and The Fish & Chips Co), and that the company will shift its focus to luxury goods. The group’s luxury brands include NWJ, Arthur Kaplan and World’s Finest Watches.
The company sold its Starbucks business to Rand Capital Coffee for R7 million in November. In the same month, Taste announced that it had also found a buyer for Maxi’s and The Fish & Chips Co. The three brands were successfully disposed on 2 December 2019, after fulfilling certain conditions.
But Taste Holding failed to find a suitor for Domino’s Pizza, despite engaging with several suitors.
“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,” said the company in a statement published on the Stock Exchange News Services.
The liquidation will leave employees in 82 of Domino’s Pizza franchises in SA and one in Maseru out of jobs.
Compiled by Londiwe Buthelezi
Source: Thanks https://m.fin24.com/Companies/Retail/dominos-pizza-goes-bust-in-south-africa-20200316