Woolworths takes local stores back
After a lengthy legal tussle Woolworths SA has come out on top.
All three Woolworths stores on the North Coast are officially back under head office control.
As of this month Dula Investments was no longer the franchise holder for the stores in Stanger, the Ballito Lifestyle Centre and Ballito Bay Mall.
The decision followed a lengthy legal tussle between Woolworths SA and Dula Investments and repeated complaints from customers about poor service, bad management and unsatisfactory stock-keeping. The stores were closed and deliveries and support from Woolworths SA suspended last year (Woolworths battle continues, Courier, Aug 2, 2013). At the time Woolworths SA had taken the franchisee to court for not meeting the terms of the franchise agreement.
Woolworths SA confirmed the decision in an official press release.
“Woolworths has recently completed discussions to purchase the stores back from our franchisee and expect to operate the Ballito stores as corporate stores from January 11, 2014.”
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