Multinational media company, Naspers, has revealed plans to permanently shut down four of its e-commerce platforms including Style36, 5Rooms, SACamera and Kinderello, operated by its electronic arm, MIH Holdings.
The South African based company, which recently appointed a new CEO in the person of Bob Van Dijk said the focus of the newly appointed CEO would be to restructure and improve the company’s e-commerce business.
“In view of our strong development focus on e-commerce, the board believes that Bob has the skills to lead us into the next phase of our growth,” Ton Vosloo Naspers Chairman said in a statement.
Although some Naspers executives insisted the sites were just undergoing maintenance and would be back online soon, Meloy Horn, Head of Investor Relations at Naspers confirmed otherwise in a statement to Marklives.com.
“Naspers subsidiary, MIH Internet Africa (MIHIA), has decided to restructure operations to focus specifically on the general e-tail businesses such as Kalahari, which we plan to grow aggressively over the next year,” Horn explained.
“The restructuring will allow more resources to be dedicated to core operations. In South Africa the group is considering closing some non-core brands (such as Style36 and 5 Rooms),” Horn added.
The decision to shut down these sites is in line with the reformation goal of the company regarding its e-commerce arm. This allows the media giant concentrate on e-tail stores as compared to specialized ones.