The announcement comes just months before the embattled hardware chain was due to open a landmark new store in Adelaide’s north.

Masters opened near  Adelaide Airport early 2015 and began work on a second store in Noarlunga in May last year. A month later, work began on an 13,500 sq m store at Parafield Airport, which was due to open in May this year and create 130 jobs. The chain has a store in Mount Gambier.

The new northern suburbs store was being touted by the State Government as a contributor to filling the employment gap being left by the closure of the automotive industry.

Woolworths chairman Gordon Cairns said in a statement today the company could not “sustain” Masters’ losses and it would be sold or wound up.

“Our recent review of operating performance indicates it will take many years for Masters to become profitable,” Cairns said.

“We have determined we cannot continue to sustain ongoing losses from this business.

“As a result of our engagement with Lowe’s, it has advised that it intends to exercise the put option which is available to it under the joint venture agreement.

“The agreement requires this to happen before Woolworths may exercise its call option.

“Following the exercise of our call option, we intend to pursue an orderly prospective sale or wind-up of the business.”

Cairns said the stores would continue to trade through this period.

“Our top priority is to do the right thing by shareholders, staff, suppliers and customers and we will act quickly and openly to minimise the impact of this decision.”

Six month ago at the Parafield Airport’s store’s sod-turning ceremony, Treasurer Tom Koutsantonis was upbeat about Masters’ plans to expand throughout Adelaide.

“I welcome Masters’ commitment to South Australia and look forward to seeing more construction and ongoing retail jobs created as a result of its expansion throughout metropolitan Adelaide.”

Koutsantonis said work on the store had created 300 construction jobs.

In 2014, Masters announced 11 stores were earmarked to be built in South Australia over six years, creating some 4500 jobs.

Cairns said the decision to withdraw from Masters allowed Woolworths to focus on its core businesses.

“Whilst we will move as quickly as possible, the put and call options process will take at least two months to complete and following this a potential sale process or other exit process will take additional time. “

In three years, the business opened 45 stores around the country, creating more than 17,000 jobs nationally.

Wesfarmers, owner of competitor Bunnings Warehouse, announced plans last week to enter into the UK home hardware market, agreeing to buy Homebase for $705 million.

InDaily has contacted Woolworths for further comment on job losses and the future of South Australia’s four Masters stores.