Popular South African sneaker brand Drip, which is owned by businessman Lekau Sehoana, is being evicted from Springs Mall in Gauteng for failing to pay rent.
Drip and Lekau, who are the first and second defendants respectively, have been dragged to the Joburg High Court by mall owners Blue Crane Eco Mall, Vukile Property Fund, Murinda Investments and F&G Investments 2.
In the court papers, which we have seen, the mall owners are seeking an eviction order to kick the Drip store out of the building for failing to pay about half a million rands in rent and services.
Relating the matter, the owners said they entered into an agreement with Drip and Lekau on February 2, 2021 to lease a commercial space to operate the shop in the bustling mall.
The lease agreement commenced on March 1, 2021 and is supposed to terminate on February 29 next year.
In terms of the lease agreement, they said, Drip was supposed to pay a monthly rental fee of just under R20 000.
The fee, which excludes value-added tax, was supposed to increase by 8% per annum or 8%of Drip’s annual net turnover.
Drip was also expected to pay just under R1 000 per month for marketing charges, R4 100 for parking, and a pro-rata share of municipal rates of over R1 200.
This, they said, excludes over R87 000 consisting of electricity, water consumption charges, refuse removal charges as well as other charges and R3 000 in administrative costs.
Drip was expected to furnish the owners with an audited statement of the net annual turnover within three months after the close of each financial year.
This was required to be certified as being correct by its auditor, reflecting its net annual turnover for such financial year.
This, they said, was for the purpose of determining the quantum Drip was supposed to pay from its net annual turn over.
If Drip failed to pay the amount, they said, it would be in breach of the lease agreement and the owners reserved the right to terminate it and re-let the shopping space.
“The first defendant breached the terms of the lease agreement by failing to make payments as agreed of the monthly rental and or turnover of the first defendant’s account, which amount is presently due, owing and payable. The plaintiffs hereby cancel the lease agreement as the plaintiffs are entitled to do effective herewith,” read the papers.
They said as a result of the early cancellation of the lease agreement, they had suffered fair and reasonable damages of over R88 000.
The amount includes December 23 to February 2024 rent of R79 000, R4 000 marketing, and R5 000 for rates.
The companies also demand an amount of R399 000 from Drip plus an eviction order to kick it out of the mall.
“Payment of the amount of R399 621.85, ejectment, forthwith, of the first defendant and anyone claiming occupation through the first defendant from the commercial leased premises described as shop SH10L072, Springs Mall, Gauteng,” read the papers.