Drip Footwear Employees Dismissed Following Company Liquidation

Employees of the local sneaker brand Drip Footwear have been dismissed this week following the company’s liquidation. The decision comes after the High Court in Johannesburg ordered the liquidation on September 9. The court order was prompted by an application from Wideopen Platform, a company that specializes in large-scale advertising, claiming Drip Footwear owed them R20 million for services rendered.

The liquidation affects 14 Drip Footwear stores located in various malls across South Africa. Lekau Sehoana, the founder of Drip Footwear and its former CEO, communicated the termination of employment to staff on Monday. This follows a period of irregular salary payments that left employees under financial strain.

Attorney Kim Warren, representing Wideopen Platform, stated, “Wideopen filed for liquidation in February, and Drip Footwear’s attempts to oppose the liquidation in March were unsuccessful.” Sehoana, who was reported to have a net worth of R280 million in 2019, has yet to respond publicly to the situation.

Anonymous staff members expressed disappointment, stating they were not informed about the company’s financial struggles. “It was sudden when last Wednesday sheriffs came, and we were told the store was being closed,” a manager said. Another employee added that a meeting last Wednesday was the first time staff were officially informed about the liquidation, despite paperwork having been filed in early September.

In a letter to employees, Sehoana mentioned that the company had considered various measures to avoid liquidation but ultimately failed to prevent it. He stated, “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 repeated attempts from The Citizen to contact him for a comment, Sehoana did not respond. Instead, he contacted his employees following media inquiries to apologize for the predicament they are facing.