Popular sneaker brand, Drip, which recently celebrated five years of success, is closing shop and the company will be retrenching employees. Businessman and founder Lekau Sehoana has informed his staff in an internal memorandum that the company is facing liquidation.

UNAVOIDABLE 

The employees' contracts have been terminated as a result. The letter, which is addressed to employees, stated: "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, notwithstanding the measures considered by the business," the memo read. 

EMPLOYEE CONTRACTS TERMINATED 

The letter stated that the implication of the liquidation meant that employee contracts are terminated with immediate effect. The letter also informed employees that the company is also going to close its outlets, with immediate effect, and that the appointed liquidator will take over all Drip Footwear operations and assets. The letter added: "All Drip Footwear Assets, such as laptops, cell phones, chargers, company cars, fuel cards, or any other item, must be returned and handed over to the business to ensure a smooth transition of the liquidation process."

MORE MONEY, MORE PROBLEMS

A few months ago, Drip Group faced losing R3.6m to the state for violating foreign exchange regulations pertaining to payment due to Sehoana two years ago. Early this year, WideOpen Platform, filed papers in the South Gauteng High Court seeking an order to wind up Drip Footwear. In the papers, the company said Drip was insolvent and unable to service its debts of over R20m for advertising space. While facing problems with his business, Sehoana's personal life and marriage to his estranged wife, Lebogang, was also falling apart. ZiMoja recently reported that Lekau's furniture at his mansion in Fourways was auctioned a day before his much publicised Drip fifth year celebration. The expensive furniture was removed to realise the North Gauteng High court order, in which Lekau was ordered to pay R165 000 spousal maintenance to his ex-wife Lebogang Sehoana, formerly Machaba, and R35 000 for child maintenance, totalling to R200 000. The same order shows that the businessman was also ordered to pay R44 000 towards unpaid school fees for his child and a further R200 000 to cover for the ex-wife's legal costs.