Taste Holdings has announced that it will voluntarily liquidate Domino's Pizza, following its failure to find a buyer for the pizza chain.
Donald Trung Quoc Don via Wikimedia
The liquidation is expected to affect approximately 770 Domino’s employees and 55 corporate stores have been closed immediately. Franchisees for the 16 franchised outlets will continue trading, with management providing advice and assistance where possible.
The voluntary liquidation will see the company write off shareholder loans to the value of R450m.
In November 2019, when Taste announced the sale of Starbucks SA
, it also stated its intentions to exit the food business entirely – including Domino’s Pizza, Maxi's and The Fish & Chips Co – as its shifts to focus to luxury goods. In December 2019, Taste sold the franchisor licensing agreements for Maxi’s and The Fish & Chip Co.
In line with its revised strategy, Taste says the board engaged with several suitors in order to dispose of the Domino’s business. 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," Taste said in a SENS announcement.
Taste said its Luxury Division is not impacted by these liquidations and will continue with its strategy as a focused luxury retail business consisting of NWJ, Arthur Kaplan and World’s Finest Watches.