Johannesburg, South Africa – A once-promising South African footwear brand, Drip Footwear, has been plunged into liquidation, leaving hundreds of employees jobless and raising questions about the company’s financial management.
The High Court in Johannesburg ordered the liquidation after the company failed to pay R20 million in advertising services to WideOpen Platform. The decision has led to the closure of Drip’s 14 stores across the country and the termination of employment for its staff.
Founder Lekau Sehoana, who has been in the industry for 16 years, launched Drip in 2019 and quickly gained popularity, attracting partnerships with celebrities like Cassper Nyovest. The brand’s meteoric rise culminated in a lavish five-year anniversary celebration in July.
However, behind the glitz and glamour, Drip was facing financial troubles. Rumors of the company’s impending liquidation began circulating as it vacated its store in the V&A Waterfront in Cape Town. In September, the V&A terminated Drip’s lease due to unpaid rent and filed legal proceedings against the company.
Drip’s financial woes extended beyond the advertising debt. In June 2023, the company liquidated its clothing shop, Kiddes Republic, due to financial constraints. Additionally, Sehoana sought government intervention to recover R3.6 million from the Reserve Bank after violating foreign exchange regulations.
