Drip, the popular South African sneaker and apparel brand founded by Lekau Sehoana, has been ordered to liquidate by the Gauteng High Court, Johannesburg, following a financial dispute with creditors.
This marks a tragic chapter for a brand that not only forged a successful five-year journey but also made significant impacts in the local fashion industry and beyond.
Drip’s rise began with promising collaborations with highly recognised figures in the entertainment world, cementing its status as an influential player in sneaker culture.
However, despite its initial success, the financial crises it encountered have proven insurmountable, leading to inevitable liquidation.
According to reports, the process will involve the selling off of Drip’s assets, including remaining stock, physical possessions, and possibly even intellectual property.
Employees are bearing the brunt of this unfortunate situation, with lay-offs commencing in various stores.
A letter circulated among staff members emphasised the gravity of the situation, where it is confirmed that measures to avoid liquidation have been unsuccessful.
The letter reads:
Dear Employee,
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 practical implication of the liquidation can be summarised as follows:
3.1 Your employment contracts are terminated with immediate effect.
3.2 We request that you no longer tender your services.
3.3 Any outlets will be closed with immediate effect.
3.4 The appointed liquidator will take over all Drip Footwear operations and assets.
3.5 All Drip Footwear Assets, i.e., laptops, cellphones, chargers, company cars, fuel cards, or any other item, must be returned and handed over to the business to ensure smooth transition of the liquidation process.
This distressing development follows shortly after Drip celebrated its fifth anniversary with a pop-up store in Ivory Park — the locale where Sehoana’s journey began.
The event showcased the launch of the new sneaker model, J26, in a bid to honour the brand’s vibrant history and dynamic presence in the sneaker market.
In a message to his followers on social media, Sehoana shared details of the brand’s recent endeavours within the newly formed Amanzi Group of Brands Company.
He announced the introduction of Sneaker Outlet, a new venture aimed at providing authentic sneakers at affordable prices, showcasing his unwavering commitment to making sneaker culture accessible to all.
While the brand has been supported over the years, many people on social media revealed that the brand’s sudden downfall serves as a poignant reminder of the challenging realities businesses often face in an ever-evolving economic landscape.
As many followers continue to share their messages of support across different platforms, Sehoana has remained mum.
The Star