Is Drip Footwear done? Talks underway to acquire the brand

There is a possibility that Drip Footwear, founded by Lekau Sehoana could make a comeback under new management.

The company recently got liquidated due to unpaid advertising fees worth R20 million to Wideopen Platform which specialises in large, high-impact advertising.

The liquidation forced Sehoana to close 14 stores across the country, leaving hundreds of people without employment.

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Drip can be acquired

Eyewitness News reported that Wideopen Platform’s lawyer, Kim Warren said there are talks with interested parties to acquire Drip Footwear.

However, she said they are still trying to locate all the assets as some have been removed from Drip’s premises, therefore they need time to secure all of them.

“In the meantime, the liquidator will negotiate with interested parties and take offers from them to take over the brand, the business and the stock. So, it’s quite possible that it could come back and trade under different management, if I can put it that way.”

What did Sehoana do to save Drip?

Minister of Small Business Development, Stella Ndabeni Abrahams on Tuesday told Clement Manyathela that she checked if Sehoana applied for assistance, and he didn’t, therefore there is nothing she can do to save the brand.

The Gauteng Member of the Executive Council for Finance and Economic Development, Lebogang Maile wrote to the Governor of the South African Reserve Bank (Sarb), Lesetja Kganyago, to request a rehabilitative intervention for Drip.

Rehabilitative law

At the time, Drip was under investigation for non-compliance with domestic tax laws. Maile, in his letter, said if the law is rehabilitative, it should make allowance for small business owners.

“It makes allowance for business owners, particularly of SMMEs (Small, Medium and Micro enterprises), to understand the depths of tax laws and other laws, which most are not exposed to and as a result, place their complete faith in third parties who, unfortunately, can take advantage of this limited understanding.”

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R100m partnership

Partnerships are often viewed as one of the elements to ensure SMMEs thrive. Sehoana and rapper Casper Nyovest entered into a R100 million partnership.

Breaking down the partnership, Sehoana said it’s just the products, they signed a contract worth R100 million for the products.

“If a Drip apparel or shoe is worth R1,000 they are going to manufacture 100,000 of those and make a profit that will equate to R100 million,” he said. The success of the partnership remains unclear to date.

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