Massmart announced last year that it would dispose of 14 Game stores in West and East Africa to stem losses in the struggling business. This included stores across Ghana, Nigeria, Uganda, Kenya and Tanzania. divestiture our 14-store Game portfolio
in East and West Africa.
"The performance and the complexity in running those businesses is something that frankly we needed to address. We've commenced a formal sales process, we're currently in discussions with potential purchasers to take on those stores," Massmart CEO Mitch Slape said last year.
However, in a Sens announcement issued today, 5 October, it appears Massmart isn't near executing a sale.
"Shareholders are referred to the Integrated Annual Report for the year ended 26 December 2021 where Massmart disclosed in the notes that, following a review of its Game store portfolio in East and West Africa, it was exploring the possible disposal of the East and West African stores to local investors and entrepreneurs with a more intimate understanding of regional and local market conditions.
"As a result, Massmart initiated a process over a 12-month period to investigate, as a preferred option, the opportunity to sell our East and West African stores to local investors. Unfortunately, this initiative did not deliver a meaningful outcome."
Consequently, Massmart confirmed it has initiated potential store closure consultations with staff members in its Game stores in East and West Africa.
Last month, US retail giant Walmart confirmed that it has signed an agreement to begin buying the 47% stake in Massmart that it does not already own.