Massmart Holdings, a retail and wholesale conglomerate founded by South African business magnate Mark Lamberti, has begun shutting down Game stores run by one of its subsidiaries in South Africa as part of a strategic move to reduce its exposure to loss-making businesses.
The news follows Walmart’s announcement that it will attempt to complete its $377.6-million acquisition of Massmart by purchasing the remaining 46.6-percent stake in the South African retailer.
Founded more than three decades ago by Lamberti, Massmart is the continent’s second-largest distributor of consumer products and its biggest retailer of general commodities, alcohol, home improvement equipment, and basic foods.
Walmart owns a majority 53.41-percent stake in Massmart, according to data tracked by Billionaires.Africa.
The recent move is part of a strategic effort to restructure its debt obligations in the face of disruptions from South Africa’s civil unrest in 2021.
Massmart announced in December 2021 that it had reorganized its debt obligations in the face of increased losses following the KwaZulu-Natal unrest in July—and that it was looking to sell 15 of its Game stores.
In line with the planned takeover, eight stores, including Bel Air (Northriding), Greenstone and Mall of the South in Johannesburg, the Cape Town CBD, the Ulundi and Westwood Mall outlets in KwaZulu-Natal, the Gilwell store in East London, and Game in Hazyview are now in the process of shutting down.
These stores are among the 15 identified by the group, and Massmart has begun aggressive markdowns on all stock in these eight locations.
All stock is being discounted by up to 40 percent, with very few exceptions, as closing down sales began at the end of August.
