Drip Footwear, the local sneaker brand founded by Lekau Sehoana in 2019, has entered liquidation following a Johannesburg High Court order, as per The Citizen report.
The decision came after Wideopen Platform, a company specializing in large-scale advertising, filed an application in February, claiming Drip owed them R20 million for advertising services.
The growth of the footwear brand came quick with a splash of multiple stores opening across the country along with gigantic billboards.
The footwear retailer was accused of being insolvent and unable to meet its debts. Despite attempts by Sehoana to challenge the liquidation order in March, the court ultimately sided with Wideopen. Kim Warren, Wideopen’s legal representative, confirmed that Drip’s failure to pay the significant advertising debt had prompted the legal action. The company also plans to pursue legal measures against Sehoana personally, after he signed a surety agreement but still failed to resolve the outstanding payment.
The financial troubles faced by Drip Footwear have led to the closure of 14 retail locations and the layoff of employees this week. Industry experts point to a combination of factors that contributed to the brand’s downfall, including supply chain disruptions, rising operational costs, and increasing competition in the South African footwear market.
Share your thoughts on this article and join the conversation on Twitter or Facebook.
