It’s the end of the road for popular sneaker brand Drip Footwear, as the Johannesburg High Court ordered its liquidation on 9 September. This ruling follows an application by Wideopen Platform, a company specialising in large-scale advertising, which claims Drip owes them R20 million for services rendered.
The court’s decision affects all 14 Drip Footwear stores across the country, leaving employees devastated by their sudden dismissal. The brand, founded by Lekau Sehoana, had been a success story in local streetwear, with Sehoana reportedly worth R280 million in 2019.
Wideopen’s attorney, Kim Warren, explained to The Citizen that Drip tried to oppose the liquidation in March but was unsuccessful. “Wideopen owed R20 million for advertising services… he tried to oppose it in March but did not win,” Warren said.
Employees expressed frustration over how the situation was handled. One store manager, who asked not to be named, described the sudden dismissal. “He did not tell us what was actually happening. It was sudden when last Wednesday we saw sheriffs, and we were told the store is being closed and staff should pack and leave.” Another worker added, “He had known for months about the application to liquidate, and we were either getting short-paid or paid late.”
In a letter to employees on Monday, Sehoana addressed the liquidation, saying, “Kindly note that the business has taken every measure to attempt and avoid the liquidation process. Unfortunately, this was an eventuality that could not be avoided notwithstanding the measures considered by the business.”
Despite the turmoil, many employees were left working without knowing the company’s fate. A second employee shared, “A meeting was only held last Wednesday to inform us about this liquidation, but when you look at the paperwork, this was filed in early September, and all along he was making us work as if there is a future for us there.”
Breaking news
The High Court in Johannesburg has issued a ruling for the liquidation of Drip Footwear as a company.
The liquidation process involves selling off the company's assets to pay off its debts, and once that process is complete, the company will be dissolved and will… pic.twitter.com/gWFTLEqB7y
— MDN NEWS (@MDNnewss) October 9, 2024A video showing some of Drip Footwear company assets being removed from its factory following the High Court's order for liquidation.
The liquidation process involves selling off the company's assets to pay off its debts, and once that process is complete, the company will be… pic.twitter.com/oG9NbcUjUR
— MDN NEWS (@MDNnewss) October 9, 2024
