Vendex KBB has decided to close down Dixtone, its chain of 45 telephone and communication shops. Most Dixtone shops will be closed.
Some outlets will be transferred to telecom company Dutchtone (Orange S.A.), which will build up a chain of telecom shops in view of the relaunch of Dutchtone under de brand name Orange. The works council involved has been asked for advice and Dixtone staff have been informed of the decision.
Dixtone was established two and a half years ago. The launch in November 1999 coincided with the telecom market boom, and in its wake both Dixtone and communication service sales experienced rapid growth. Up until 2000, the Group enjoyed considerable bonuses and distribution fees.
However, market conditions changed significantly over the past year. The mobile telephone market reached the saturation point and telecom providers were forced to reduce sharply the often considerable subsidies offered on the sale of connections. As a consequense, DixtoneÂ's result suffered. Given the fact that Dixtone’s existence depended heavily on distribution fees, a decision was made to drop the formula and transfer some of the shops to Dutchtone. The closures will have no negative financial consequences for the Group.
Closing down Dixtone means a loss of approximately 110 full time jobs in the shops. Further research will be conducted to determine effects on the overhead. Shop staff comprise primarily young employees and relocating them should not be a problem. Moreover, the Vendex KBB social plan applies. The jobs in the shops scheduled for transfer to Dutchtone will likewise be transferred to this company.
(source: Vendex KBB)
