| Fri 14 May 2004, 17:05 | | MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBE |
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MASSMART HOLDINGS LIMITED - MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBENS
VALLEY
Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1940/014066/06)
JSE Share code MSM
ISIN: ZAE000029534
("Massmart")
MASSMART UPDATE IN RESPECT OF FIRE AT MAKRO STRUBENS VALLEY
Makro Strubens Valley, the 12th Makro store in South Africa, was opened on
16th October 2002. The store, and Makro"s unique trading concept, met with
immediate success and quick acceptance by customers, resulting in the decision
to expand the store. Construction on the expansion commenced on 15th March
2004.
At 13.30 on Thursday 13th May 2004, a fire was started in the roof by sparks
from an angle grinder, being used by a construction worker. The fire quickly
went out of control and spread rapidly throughout the rest of the store, totally
destroying the building and its contents.
In accordance with procedures, the management of the store responded immediately
by evacuating customers and staff. There was no incident or panic during the
evacuation that took approximately 10 minutes, followed by a full staff roll-
call. Trained staff members tried to douse the fire and move merchandise.
The Fire Brigade and Emergency Services arrived within 15 minutes and helped to
control and contain the fire, the environment, and the safety of customers,
construction workers and staff. No injuries occurred to customers or
construction workers and four staff members who suffered minor injuries were
treated on the site, together with several Firemen who were affected by smoke
inhalation.
When Makro Strubens Valley was constructed, an additional sprinkler system was
installed linked to its own water tanks. With the full knowledge of the
insurers, the tanks were being moved during the construction of the store
extension and the sprinkler system was disconnected from the special tanks and
reconnected to the municipal mains. The water pressure from the municipal mains
was not strong enough to control the fire.
Environmental issues were addressed immediately. Effluent water and waste is
being prevented from flowing into storm drains by the Enviro Serve Waste
Management who are containing the spillage and pumping liquid waste into
removable tanks. Water and Forestry have been informed and are also checking to
minimise the environmental impact. The Fire Department is still on scene
ensuring that the smouldering ruin is extinguished as fast as possible to
prevent further smoke pollution.
This incident was particularly regrettable as the management of Makro has taken
significant steps to limit the risks of fire:
* Two years ago a comprehensive external risk audit was undertaken in all
Makro stores by ASIB (Automatic Sprinkler Inspection Bureau) and VMG
Consulting, mechanical and fire engineers, whose recommendations were fully
implemented in Strubens Valley. This includes inter alia additional fire
sprinklers, emergency signage and detection systems linked to external
control rooms.
* Highly flammable materials such as chlorine are only stocked in small
quantities on the trading floor, with the bulk of the stock being kept in
back-up areas.
* Staff have been comprehensively trained in emergency/medical and store
operational procedures.
Permanent staff members will be relocated with effect from Monday 17th May to
other Makro Gauteng stores. The importance of trading relationships will be
recognised by the relocation of staff to the store nearest their customers.
Makro"s customer and trading databases were not destroyed in the fire, and
customers will be assured of their guarantees on any merchandise purchased and
the appropriate handling of goods that have been handed in for return or repair.
A comprehensive marketing campaign is being formulated to entice customers to
alternative Massmart stores.
Makro is comprehensively insured for the building, assets, merchandise and any
loss of profit. All administration pursuant to this insurance is in order and
the management of Makro met with loss adjusters at 7.30 a.m. this morning to
begin the processing of a claim with a view to opening a new, larger store on
the same site as soon as possible before Christmas 2004. No financial loss to
Makro or the holding company Massmart is envisaged.
Members of the SAPS are to be complimented on their very efficient approach to
rapidly determining the cause of the fire, through numerous corroborating
statements, copies of which are in the possession of Makro.
We would like to thank all Makro staff and all members of the Emergency Services
who prevented any serious injury or loss of life. We would also like to
apologise to residents in close proximity to the store who have been
inconvenienced in any way.
14 May 2004
Enquiries:
Rob Pinker
Brunswick
083 326 7794
Taryn Proksch
Brunswick
083 273 1301
Date: 14/05/2004 04:56:08 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
