South Africa’s Groupon has announced its decision to shut its doors to South Africans giving the huge loss it experienced in the financial results for the quarter which ended on 30 September 2016. in which the company showed a net loss of $35.8 million.
For the last quarter, Groupon experienced a record net loss of over $35.8 million.
The website which offers discounted deals since 2010 said it wound down its operations in South Africa from Friday and would be unable to offer any deals henceforth.
“For our customers, this means we will stop offering deals on our website from tonight,” it said. “All current vouchers bought will remain valid until the date stated on the voucher.”
It was earlier reported that the website would shut down operations by November after the global entity announced it will develop a “streamlined country footprint”.
“The company has identified its go-forward country footprint to consist of 15 countries, down from 27 in the portfolio as of the second quarter 2016,” Groupon said, adding that the website is pursuing strategic alternatives and other options to exit the remaining countries, which they expect will continue into 2017.
MyBroadband had said it was informed by a reliable source that Groupon South Africa is likely one of the countries which will be exited” and Groupon confirmed this on Friday saying “we are sorry not to be able to offer you any great deals today, but thank you for your interest in Groupon”
“Goods purchased up to 4 November will be fulfilled,” it said. “Should you need to return a Goods item you purchased, please do such before 30 November,” the company said as it urged customers who are uncomfortable with using their voucher to get a cash refund option.
Groupon’s model was to offer daily deals on the “best things to do, see, eat, and buy in a variety of cities across South Africa” and their sudden decision to leave the country could only mean that Groupon South Africa is facing an uncertain future.