More than 100 people who consigned limited-edition sneakers and clothing with the sneaker resale shop Court Order are fearing the worst after the company entered voluntary liquidation.
Some claim to be owed between R50,000 and R100,000 worth of stock and payments, with questions now being raised about whether they will get their money or items back.
Court Order director Ahmed Seedat confirmed the business had entered voluntary liquidation and apologised for the lack of communication.
“I recognise the distress, anger and uncertainty this has caused, particularly for consignors awaiting payment or the return of their stock,” he said.
“Following the commencement of liquidation, Court Order’s bank accounts have been frozen. We are therefore unable to access company funds or make payments.
“Unsold inventory held on consignment remains the property of its respective owners and does not form part of Court Order’s assets available to creditors.”
Dean Promnick, who started consigning with Court Order in March 2021, said he was owed about R110,000 in cash and had between R250,000 and R350,000 worth of stock with the business.
He managed to withdraw 64 of his 110 items before the liquidation process, but 46 items remained with Court Order.
“They still have 46 items of mine. On their system it only shows 17 active items, which means they can’t find those 17 items,” he said.
I recognise the distress, anger and uncertainty this has caused ...
— —Court Order director Ahmed Seedat
According to Promnick, payment delays at Court Order started towards the end of last year and worsened over time.
“Eventually, when it got to this year, they were about three months behind on payments. And now, recently, they were about six to seven months behind on payments.”
He said despite the delays, Court Order continued selling stock at high prices.
“I had a pair… I bought it for R15,000. I listed it at Court Order. They sold it for R20,000.
“So while they’re not paying you, you still have this hope that you’re going to get paid.”
Another consignor, Mohale*, said he was owed R129,000 and had a few missing items.
“I listed shoes and clothing with them, and some of these items were sold in May last year, and I’m still waiting for some sort of payment,” he said.
“I feel tricked, honestly, because you see them selling these pieces, but the profits never make it back to you.
“They don’t respond to emails; there’s no sort of assurance or communication,” he said.
Promnick said shop staff were not aware of the liquidation and continued helping consigners withdraw stock.
“The staff were just trying to do the most to help everyone.
“They took it upon themselves when everyone started requesting withdrawal to start moving all the items from out of the store into the headquarters,” Promnick said.
Mohale said he noted Seedat’s statement but said, “I think he’s trying to get sympathy with everyone. But that’s not what happened. He only reacted after we found out and were coming for him.”
Seedat said the liquidator would determine how available funds were administered in accordance with the liquidation process.
“Once appointed and granted the necessary authority, the liquidator will assume control of the company’s financial affairs.”
*Not his real name.
Sowetan
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