The end may be near for South African shoe brand Drip Footwear as an advertising agency has applied for the liquidation of the company following its alleged failure to pay a hefty R20 million debt.
WideOpen Platform, who filed the papers in a Johannesburg high court, may also have plans to file a lawsuit against Drip Footwear’s founder, Lekau Sehoana, as he had failed to pay the debt after signing a surety agreement for the entity, reports Sunday World. Lekau and Drip (which came to life in the year 2003) reportedly promised to pay the debt in a variety of three installments dating from 30 June 2023 to last month.
According to papers seen by the above-mentioned publication, the following information was stated: “The respondent is currently indebted to the applicant in the sum of R20 442 285.06 with interest thereon at the prevailing prime interest rate calculated from 1 June 2023 to the date of payment, both days inclusive.” The court papers continued, “The respondent’s indebtedness to the applicant arises out of certain advertising agreements concluded between the parties.”
WideOpen Platform’s managing director, Tomer Cohen, made claims that Lekau signed an acknowledgment of debt (AD) after failing to pay the fees, something that both Lekau and Drip have admitted to.
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The paper further stated that “the full balance outstanding in respect of the principal debt shall be paid in full on or before 30 April 2024.”
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