Lekau Sehoana of Drip footwearDrip Footwear liquidation-Image Source@X
Drip Footwear, the renowned sneaker brand founded by Lekau Sehoana, is on the verge of liquidation owing to an outstanding debt exceeding R20 million owed to WideOpen Platform. This advertising agency provided services to the brand.

Financial Crisis Unfolds

Legal documents filed by WideOpen Platform in the High Court in Johannesburg reveal that Drip Footwear is currently deemed insolvent, lacking the capacity to meet its financial obligations. WideOpen Platform is now pursuing a court order to initiate the winding-up process under the Companies Act.

Personal Liability at Stake

The filed papers indicate that WideOpen Platform is contemplating legal action against Sehoana, Drip Footwear’s founder, who guaranteed the debt through a surety agreement.

Debt Accumulation and Legal Actions

Tomer Cohen, the managing director of WideOpen Platform, stated in an affidavit that the debt accumulation arose from advertising agreements between the two entities. Drip Footwear reportedly owes WideOpen Platform a substantial amount of R20,442,285.06 with interest calculated from June 1, 2023, to the present.

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Drip footwear founder
Drip Footwear founder Lekau Sehoana-Image Source@X
Cohen asserted that Sehoana acknowledged the debt by signing an acknowledgement of debt (AD) but subsequently failed to adhere to the agreed-upon payment schedule. The original plan was to repay the debt in instalments, starting from June 30 of the previous year and concluding on April 30 of the current year.

Legal Measures Taken

Cohen engaged legal representation and sent a formal letter on November 1, 2023, demanding the payment of outstanding amounts within 21 days, as per Section 345[1][a] of the Companies Act. However, Drip Footwear and Sehoana failed to comply with the demand.

Despite a subsequent letter from SVN Attorneys, legal representatives of Drip and Sehoana, claiming factual solvency, Cohen emphasized that solvency alone is not sufficient grounds to withhold a winding-up order. With no further communication from Drip and Sehoana or their attorneys, Cohen asserts that the respondent is deemed unable to pay its debts, justifying the pursuit of a winding-up order.

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Separate Lawsuit Against Sehoana

Cohen revealed plans to file a separate suit against Sehoana, emphasizing that no evidence supports the realizable nature of the security provided for the deals. Despite demands, Sehoana has not made any attempts to settle the debt with the WideOpen Platform.

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