As news of the liquidation of Lekau Sehoana’s Drip Footwear business, it has emerged that he once ignored advice from a fellow entrepreneur on overspending.
Drip Footwear was forced to shut down operations to pave way for the sale of the company’s assets due to huge Debts.
On 9 September, the High Court in Johannesburg ordered the liquidation after an application by Wideopen Platform which specialises in large, high impact advertising.
Employees dismissed after company liquidation
Attorney Kim Warren, who is representing Wideopen, said: “Wideopen owed R20 million for advertising services adding that it filed for liquidation in February and ‘he tried to oppose it in March but did not win’.”
Drip was founded by Lekau Sehoana, reported to have a net worth of R280 million in 2019.
Lekau Sehoana ignored advice
An entrepreneur has come out to highlight how Sehoana ignored his advice to tone down on his expansion ambition as it would damage his business.
Referring to a post he shared three years ago, Makuni Ganya shows how Sehoana was rude in his response after buying a fleet of vehicles to work as couriers for his sneakers.
Ganya says he suffered an almost identical fate a decade before in his business ventures and so was out to help a brother.
Three years ago, I warned our dear brother Lekau Sehoana about keeping overheads low. His business was just starting to take off. He rejected my advice, but I was talking from experience. I made similar mistakes with my first business back in 2011. It was a painful experience.
Lekau Sehoana seemed rude in his response “Please don’t subject your mistakes and fears on me.”
It shows that Drip Footwear business failed because of Lekau Sehoana’s refusal to heed sound business advice as he went on to lose out.
Ganya went to share how Sehoana could have handled his business.
” Minimize or avoid brick and mortar. With platforms like Amazon or Takealot you can push sales and establish your brand using these channels. Take your business online!
” List your product/brand with established retailers. That way you save money on marketing and rentals.”
