As of 6pm today [March 19], all Dion Wired stores will officially cease trading, according to the retailer’s Twitter page announcement.

Shareholders were also notified of the closure of 23 stores today with the remaining non-performing Massmart stores still hanging in the balance.

The move comes after the retailer announced entering into an s189 consultation process in terms of the Labour Relations Act (LRA) in January this year. In terms of s189 of the LRA, an employer is obliged to consult with employees when it contemplates dismissal for operational reasons.

“Since 13 January 2020, management has consulted extensively with the affected employees; organised labour and other relevant stakeholders under the guidance of the Commission for Conciliation, Mediation and Arbitration (CCMA) and all options/alternatives in respect of the potential closure of the affected stores have been exhausted,” Massmart said.

Since the consultation processes, the board has decided to close non-performing stores and work alongside unions to reduce the effects of the stores closing on staff members. Employees from closed stores could possibly be moved into other positions within an existing Massmart Group.

The stores have a long history spanning back to the 1970s when Dion Friedland established the chain as an experienced entrepreneur in the furniture and appliance market.

In 1993, the Massmart group acquired 20 Dion Wired stores and roughly 20 years ago an expansion to the African continent was ushered in as Walmart took over the chain.

Profits at Dion Wired and Game stores took a huge plunge in 2019 due to terrible trading conditions, inspiring the consideration to close them down.

Makro and Builders Warehouse stores owned by the same company, however, are still going strong.

Below is a list of store locations that will be closed:

Picture: Twitter

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