Drip Footwear, a popular local sneaker brand, has been forced to close down after a court ordered the company to be liquidated. Over 1000 companies in South Africa were liquidated in 2024. This decision means that all its stores will close, and the workers will lose their jobs. The company had 14 stores across South Africa.
Court Orders Liquidation Over Debt
The closure came after Drip Footwear was taken to court by an advertising agency, Wideopen Platform. The court ruled that Drip owed them R20 million, which they couldn’t pay. As a result, the court ordered the company to be shut down.
“The respondent is currently indebted to the applicant in the sum of R20 442 285.06 with interest thereon at the prevailing prime interest rate calculated from 1 June 2023 to the date of payment, both days inclusive,” read the court papers.
To make matters worse, the Reserve Bank is holding back R3.6 million from Drip Footwear due to issues with foreign exchange violations. This means the company’s financial problems are even bigger than expected.
Workers Left Without Jobs
With the company being liquidated, all employees working in Drip’s 14 stores have lost their jobs. The sudden closure has left them in a difficult situation, as they did not receive notice or support before losing their positions.
Drip Footwear’s closure is a major blow to both its workers and the local sneaker industry.
Read more: Drip Footwear | Pat on Brands
