Taste Holdings has announced that it will liquidate its food business.
The voluntary liquidation will see the company write off R450 million in shareholder loans, following an “inability to find a buyer for its troubled franchising business Domino’s Pizza”.
A statement on the matter said the move will affect 770 employees. The 55 Taste Holdings corporate stores have also been closed.
“Franchisees for the 16 franchised outlets will continue trading, with management providing advice and assistance where possible,” read the statement.
“Taste has received no communication as to the date of cancellation of the franchising licence.”
“The liquidation decision comes despite the group’s extensive international efforts to sell its licensing agreement for the global pizza brand with the affected companies being Taste Food Franchising, Taste Commissary, and Taste Food Trading.”
The company said that its Luxury Division and banking facilities remain unaffected by the liquidations. It will therefore continue to focus on its NWJ, Arthur Kaplan, and World’s Finest Watches brands.
The move comes after Taste Holdings announced in November 2019 that it will exit the food business.
The group’s food brands included Starbucks, Domino’s Pizza, Maxi’s, and The Fish & Chip Co.
Taste sold its 13 stores in the global coffee brand Starbucks and the franchisor licensing agreements for Maxi’s and The Fish & Chip Co. in December 2019.
It also entered an agreement to sell the Starbucks master franchise licence for South Africa for R7 million.