South African mobile operator Cell C has reported that it expects to close around 128 stores across the country.
Not surprisingly perhaps, a Cell C spokesperson has pointed to changes in the retail environment and the effects of the coronavirus as part of the reason for the shift from physical retail.
The company is in the process of finalizing a recapitalization plan that it hopes will improve its liquidity and debt profile. As we reported not long ago, the long-planned migration of Cell C’s network traffic to rival operator MTN is planned to go ahead, assuming MTN Group is satisfied that Cell C’s financial situation has stabilized.
This approach would offer a clear saving for Cell C, as would plans to lay off more than 38 per cent of its workforce, although the company has also said it is looking at a number of ways to reskill some of the affected employees.