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Drip Footwear Ordered to Liquidate Over Unpaid Advertising Debt

BUSINESSNEWS

Drip Footwear, a prominent South African sneaker brand, has been ordered to liquidate by the High Court in Johannesburg due to unpaid advertising services amounting to R20 million. Founded by Lekau Sehoana in 2019, Drip Footwear had established itself as a streetwear icon, boasting a net worth of R280 million

WideOpen Platform filed the papers in the high court in Johannesburg, seeking an order to wind up Drip, saying the company is insolvent and unable to service its debts

The company’s financial woes began when WideOpen Platform, a large-format advertising specialist, filed an application for liquidation in February, Despite Sehoana’s attempts to oppose the liquidation in March, the court ruled in favor of WideOpen

Attempts to Save Drip Footwear

Prior to the liquidation order, senior political figures and regulators attempted to intervene. In August, Gauteng finance and economic development MEC Lebogang Maile requested a “rehabilitative intervention” from Reserve Bank governor Lesetja Kganyago to save The Drip Group. However, these efforts ultimately proved unsuccessful.

Consequences of Liquidation

As a result of the liquidation, Drip Footwear’s 14 stores will be shut down, and employees have already been laid off. The company’s inability to pay its debts has also led to the termination of its lease at the V&A Waterfront in Cape Town, with the landlord demanding R1.1 million in unpaid rent.

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