Taste Holdings liquidates its food business, CEO Duncan Crosson sheds more light on the way forward

Taste Holdings, the company behind popular brands such as Starbucks and Dominos Pizza, is facing a challenging time as it moves forward with the liquidation of its food business. The decision to close down 55 stores, resulting in 770 job losses, came after the company failed to find a buyer for its licensing agreement for Dominos Pizza. Duncan Crosson, the CEO of Taste Holdings, shed light on the reasons behind this difficult decision and provided insight into the company's future plans during an interview with CNBC Africa. Crosson explained that the inability to find a buyer was not solely due to price considerations but also related to operational challenges within the business. Some stores were not performing as expected, necessitating a consolidation and closure of certain locations. Despite being involved in discussions with potential buyers, the investment required to sustain operations proved to be a significant hurdle. The CEO acknowledged the global economic squeeze and the need for a strategic focus on viable opportunities. In terms of the timeline for the liquidation process, Crosson revealed that Taste Holdings is in the process of filing for voluntary liquidation, which is expected to be granted within a week to 10 days. Once the liquidation is approved, the company will be under the control of the appointed liquidator. The CEO addressed concerns about job losses, stating that approximately 770 staff members would be affected by the store closures. Regarding the impact on shareholders, Crosson highlighted the significant impairment expected as a result of the liquidation. Shareholders had supported the company through a rights offer intended to alleviate the financial strain. However, with a remaining shareholder loan of 450 million, the food division's closure represents a substantial loss for investors. Despite this setback, Crosson expressed optimism about the company's future prospects, particularly in its luxury business segment. Looking ahead, Taste Holdings aims to focus on growing its luxury business with the backing of sufficient funding. The company plans to leverage its resources to expand and develop its upscale brands, emphasizing a shift towards a more promising market segment. While challenges lie ahead, Crosson remains hopeful about the potential for growth and success in the evolving business landscape. As developments continue to unfold within the group, stakeholders and observers will closely monitor Taste Holdings' strategic decisions and actions in navigating the aftermath of the food business liquidation. The road ahead may be tough, but with a clear vision and strategic planning, the company seeks to adapt and thrive in a competitive market environment.