Citizen Reporter
1 minute read
31 Jul 2015
5:36 pm

Platinum Group Services denies alleged liquidation

Citizen Reporter

Platinum Group Services has denied media reports that the company was placed under liquidation.

Picture: Thinkstock

In a statement, the company denied the liquidation reports, saying they are “wholly incorrect”.

“Although there is certainly pressure, no part of group is in liquidation and reports to the contrary are misguided,” the statement read.

The company owns and operates South African heritage clothing brands such as Aca Joe, Vertigo, Urban, Hilton Weiner and Jenni Button label among others.

A recent research conducted by the Sunday Times rated Urban and Aca Joe in the top five coolest and most popular SA brands.

The company has reportedly received offers from international and local suitors. This has caused the group to focus on a “re-capitalisation” exercise to grow the brand base. This follows a recent auto-immune, orthopaedic surgery that the group owner, Marcel Joubert, had.

“While the re-capitalisation process is underway, pressure has been placed on the group’s ability to perform optimally. Certain landlords, such as Old Mutual, have strongly supported the group and its brands during this period – while others have regrettably taken a more confrontational approach.

“To protect the affected stores and parts of the group, the executive has recently elected to initiate structured business rescue proceedings on the affected entities, to return the group to optimal condition, with the assistance of a structured process.”