According to Sunday World, WideOpen Platform, headquartered in Johannesburg, has initiated the process of liquidating the well-known sneaker brand Drip Footwear due to its failure to settle debts exceeding R20 million.
WideOpen Platform has lodged the necessary documents in the Johannesburg High Court, requesting the liquidation of Drip, citing its insolvency and incapacity to meet financial obligations.
Furthermore, WideOpen Platform plans to pursue legal action against Drip’s owner, Lekau Sehoana, for defaulting on the debt despite having signed a surety agreement on behalf of the company.
“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,” read the court papers.
Drip and Sehoana agreed to make payments totaling over R3.6 million in three installments exceeding R1.2 million each, starting from June 30 of the previous year.
Additionally, they pledged to fulfill payments of just under R6 million in three installments, each under R1.9 million, starting from September 30. Furthermore, they committed to paying nearly R12 million in three installments, each under R4 million, starting from December 31.
Moreover, they undertook to pay over R6.9 million in three installments of R2.3 million each, starting from the conclusion of the current month.
“The full balance outstanding in respect of the principal debt shall be paid in full on or before 30 April 2024,” read the papers.
