Drip Footwear and its owner, Lekau Sehoana, have vacated their shop in Cape Town
after falling behind on rent, and the property owner is suing them to recover money owed.
According to V&A Waterfront Holdings, which owns the popular Waterfront mall, from which Drip Footwear and Sehoana have been plying their trade Drip have also left the shop untidy.
Waterfront filed papers in the Johannesburg High Court last week, demanding that
Sehoana and his company, who own South Africa’s most popular sneaker, Drip, pay it R1.1-million in unpaid rent or be blacklisted.
In court papers Sunday World has seen, Waterfront Holdings stated that it entered into a lease agreement with Drip in Centurion on or around December 23, 2021, alternatively January 1, 2022, and in Cape Town, to rent a shop at Victoria Wharf, V & A Waterfront.
Drip also rented a storeroom in Victoria Wharf for a period of three years, commencing on September 1 2021 and ending on July 31, 2024.
According to the agreement, Drip and Sehoana undertook to pay the entity an amount of R750 per square metre for the shop, and R200 per square metre for the storeroom. These amounts excluded value added tax.
They also agreed to pay turnover rental at the rate of 10% annually, monthly operating costs at R150 per square metre, and pro rata share of rates at R94.35 per square metre per month. They a so agreed to pay for sewerage at R12.30 per square metre per month, plus any increases imposed by the relevant authority.
Drip and Sehoana also agreed to contribute a marketing fund equal to 5% of the fixed monthly rental and utility charges for electricity, gas and refuse.
They were also expected to pay a deposit of R237 400 to secure the retail space.
They agreed to pay all rentals and other amounts due by Drip in advance on or before the first day of each and every month, without any deductions or set-offs.
On expiry or early termination of the lease agreement, Drip would surrender the leased premises in accordance with the retail specifications attached to the lease agreement, the court paper stated.
“Any unpaid debts due and payable by the first defendant shall bear interest at a nominal rate of prime rate plus 10% compounded monthly.
“The first defendant agreed to pay the plaintiff’s legal costs on an attorney and own client scale should the first defendant be in breach of the lease agreement.”
Waterfront Holdings said Drip repeatedly breached the lease agreement when it
defaulted on rental payments and is now more than R1-million in arrears.
The company stated that due to Drip’s continuous breach of the terms of the lease agreement, it issued a “rent interdict summons out of the Cape Town Magistrate’s Court”. Waterfront reported that it has received a judgment.
A warrant of execution has been issued to recover the judgment amount. Waterfront Holdings stated that as a result, it auctioned off Drip’s assets but only raised about R94 000.
Waterfront Holdings says Drip vacated the shop in June this year and left it in inadequate condition.
“The first defendant absconded from, or alternatively vacated the leased premises during or about June 2024 pursuant to the removal of the first defendant’s assets from the leased premises by the sheriff for the Magistrate’s Court for the district of Cape Town,” read the papers. Waterfront
also said it later re-let the premises with effect from July 1 after spending more than R160 000 to reinstate it to their white box condition.
“As a result of the first defendant’s failure, alternatively refusal, or alternatively negligence to reinstate the leased premises to their white box condition, and in order for the plaintiff to hand over the leased premises on time to the new
tenant thereof, the plaintiff attended to the reinstatement of the leased premises to their white box condition.”
Waterfront Holdings stated that because Sehoana signed as Drip’s surety on May 12, 2021, he was liable for the debt payment.
The entity said it pleaded with Drip and Sehoana to remit payment of the amount owed, but its pleas fell on deaf ears.
“The first defendant has failed, refused, and/or neglected to make payments of rentals and other charges in an amount of R1, 032 349.44,” read the court papers.
Crazy rental amounts for a shoe shop. Landlords are greedy.
Sure but again you can’t simply not pay rent. I mean anyone who thinks that needs their head read. Drip went into the agreement with v a knowing the amounts, that’s the choice they made. This is not greedy landlord issues this is dodgy tenants trying their luck and breaching contract. Way too much sympathy for the wrong doers in this country.
The Government should apply a law on new retail businesses where reachable rentals can be achieved aswell as a better structured integrated banking financial system with a well equipped accounting system in place for longer sustainability,all parties to leases should be held accountable if there is a breach of contract also based on financial history transactions monitored on a monthly basis this referring in the interest of tenant percentage of turnover clause
But this clause percentage on turnover should be made illegal because in most cases tenants tend to default on this clause
In most retail cases landlords tend to squeeze out as much as they can out of ur hard earning investment retail landlord will ultimately shatter ur dreams
Unlike chain stores they have various financial power structures in place they dictate and monopolize they should also contribute towards small businesses
No no no. If a tenant signs a contract they are aware of the costs and they need to honor the agreement. What is wrong with people today.we support wrongdoers. If this tenant could not pay and obviously knew this then they should have not signed the contract. I have zero sympathy for them and then to leave the premise a mess. No that is despicable and just entitled. Va must take the owner to the cleaners. The law needs to change to lock petty criminals like this up as well. And as for the woke liberal lefties who seem to think that the landlords are the issue, grow some brains please
I love Lekau’s initial statement when he started the brand saying….’His making the shoes from recycled material AND wants to make it accessible to all in the township as well’….ha ha ha….what a joke….they were so expensive…. definitely not for the ordinary pocket.
A rather sad story though, because here was a visionary and he really could have taken his shoes to new heights….sad to see this fail 😔
That’s so sad to hear, people will lose jobs
Only an idiot leases at the waterfront.
He wanted to fly before he could walk
This discussion would not even happen if he was a white man. He is black, and a good guy too , but now his skin colour affords him more sympathy. Just the way it is.
Why didn’t he rent a smaller space and why agree to rent that’s linked to your turnover, that literally allowing the landlord a share of your business, He needed a proper accountant or business strategist to help him out