A Joburg-based company has applied for the liquidation of Drip Footwear for failing to pay it more than R20-million.
WideOpen Platform filed the papers in the high court , seeking an order to wind up Drip, saying the company is insolvent and unable to service its debts.
In the papers, which we have seen, WideOpen Platform managing director Tomer Cohen says Drip should be liquidated in terms of the Companies Act, citing its inability to pay for advertising services rendered to the sneaker brand.
“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.
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“The respondent’s indebtedness to the applicant arises out of certain advertising agreements concluded between the parties.”
Cohen claimed Sehoana signed an acknowledgement of debt (AD) after neglecting to send money.
Drip and Lekau admitted that they owed WideOpen the enormous sum in relation to the AD.
Both Drip and Sehoana undertook to pay a total of over R3.6-million in three instalments of over R1.2-million from June 30 last year.
They also made a commitment to pay just under R6-million in three instalments of under R1.9-million from September 30, and promised to pay almost R12-million in three instalments of under R4-million from December 31.