Drip sneaker company goes into liquidation, assets seized

Drip founder and businessman, Lekau Sehoana’s company assets have been seized as the firm goes into liquidation.

Furthermore, the company’s employees are now left without jobs following a letter that was issued to them on Monday.

“Dear employees, 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 not withstanding the measures considered by the business,” the letter to workers read.

Employees were asked to no longer render their services and were told that their employment contracts were terminated with immediate effect.

In a video posted on X, a car belonging to Drip can be seen loaded onto a truck, while furniture from the company’s headquarters has been moved outside.

In August, SowetanLIVE reported that Sehoana, had violated foreign exchange regulations and forfeited R3.6m to the state.

He then sought assistance from Gauteng finance MEC, Lebohang Maile who wrote to SA Reserve Bank (SARB) governor Lesetja Kganyago, to plead for leniency on behalf of Drip Group.

Maile justified his involvement by saying he wanted to prevent job losses and the closure of the company.

Unfortunately, this was an eventuality that could not be avoided not withstanding the measures considered by the business

—  Drip Group

“All we are saying is we are pleading with the SARB to give him [Sehoana] enough time to speedily resolve the issue and try to guide him through the process instead of just being punitive. I’m not instructing the Reserve Bank, I’m just pleading,” Maile told SowetanLIVE.

It is not the first time that the Tembisa-born businessman has had financial problems. In June last year, Sehoana announced that the company’s clothing shop under the Drip Group, Kiddies Republic shops, was closing down and a liquidation process was underway. Sehoana said Kiddies Republic was not financially viable.

In January, WideOpen Platform, a company specialising in large, high-impact advertising, filed papers in the South Gauteng high court seeking an order to wind up Drip Footwear, saying the company was insolvent and unable to service its debts of over R20m for advertising space.

On social media, people are sympathising with the businessman and are wishing that he rises again.

SowetanLIVE