Westfield’s retail technology start-up OneMarket is to be “wound up” after posting massive losses of $242 million over the past two years.
OneMarket, which formerly traded as Westfield Labs, was let go by the shopping centre giant last year when it was acquired by Unibail-Rodamco, and subsequently listed on the Australian Securities Exchange.
Before it was let go by Westfield OneMarket, chaired by former Westfield director Steven Lowy, offered retailers operating inside the shopping centre data-led solutions enabling them to engage with consumers before, during and after purchase.
Ever since the split the company has lost $65 million in just over a year and has come under pressure from activist shareholders to put itself up for sale.
Following a four-week strategic review, OneMarket told investors that it believed an “orderly wind-up” of the company and distribution of its assets was best.
A majority of 75 per cent of shareholders will need to approve the move, and an extraordinary general meeting will be held in late November or early December.
“That decision has been a difficult one but, having carefully weighed the alternatives and assessed the attendant risks, the OneMarket board believes that this is the right decision to make in the circumstances,” OneMarket’s company secretary Simon Tuxen said.
“At this stage, it is anticipated that a number of shareholder approvals will be required. The current intention is that the notice of meeting for the necessary meeting will be prepared and dispatched during the next four weeks. If shareholders approve proceeding with the winding up, OneMarket would also seek to be de-listed from the ASX.”