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BL Premium reports that local sneaker brand Drip Footwear has been placed in liquidation, resulting in the dismissal of its workforce and the closure of 14 stores nationwide.
The winding up of the company comes as a result of a court ruling stemming from a legal battle with advertising agency Wideopen Platform over an unpaid debt of R20m. In a letter to employees dated 7 October, Drip Footwear said it had exhausted all avenues to avoid liquidation and all employment contracts would be terminated immediately. Arrangements would be made to collect company assets as part of the liquidation process, it added. Founded in 2019 by Lekau Sehoana, Drip Footwear sought to promote local craftsmanship and cultural identity. The brand quickly gained popularity thanks to its innovative designs and a robust social media presence and it grew to 25 retail outlets. Despite its initial success, Drip has faced financial challenges in recent months. The court’s decision to liquidate the company has raised concerns about the livelihoods of its employees and the wider impact on their families. The situation has also attracted political attention. Gauteng economic development MEC Lebogang Maile has urged the Reserve Bank to reconsider the withholding of R3.6m from Drip due to violations of foreign exchange regulations. Maile argued that it was important to support local businesses, particularly those founded by historically disadvantaged individuals.
- Read the full original of the report in the above regard by Nompilo Goba at BusinessLive (subscriber access only)
- Read too, Big South African footwear company goes into liquidation, at Daily Investor
Get other news reports at the SA Labour News home page