Advertise with fastmoving.co.za
 
 

Pepkor takes action against Tekkie Town founders.
Pepkor takes action against Tekkie Town founders.

Pepkor takes action against Tekkie Town founders

RETAILER NEWS

By Janice Kew and Loni Prinsloo - Sep 12th 2018, 11:16

Steinhoff's Africa retail business Pepkor has filed a court order against former executives at shoe retailer Tekkie Town to prevent them from setting up a rival operation, the latest development in a bitter dispute. 

Pepkor Holdings, formerly known as Steinhoff Africa Retail, wants restraint of trade provisions against five previous employees including Braam van Huyssteen, Bernard Mostert and Michael Brown, according to a statement given on Tuesday. Steinhoff bought Tekkie Town in 2016, and the chain became part of Steinhoff Africa when the latter was spun off about a year ago.

Founder Van Huyssteen was initially kept on at the chain, but the relationship turned sour when Steinhoff announced accounting irregularities in December that wiped 95% off the share price.

About 100 Tekkie Town staff walked out in June after Van Huyssteen brought a claim against Pepkor related to an earn-out agreement he said he had with its parent, while the founder also sought to evict the company from offices in the coastal city of George, where Tekkie Town is based.

Documents supporting the court application accuse the former employees of attempting to drive down the share price of Pepkor and buy back Tekkie Town, which has about 381 shoe stores. If that failed, an alternative plan was to start a business in direct competition with the shoe retailer. Van Huyssteen has previously said that he planned to start a business called Mr Tekkie.

The ex-Tekkie Town executives will hand in their responding affidavit by Friday, van Huyssteen said by phone. “We are prepared to defend our case.” A criminal case has been opened against Pepkor for using the shoe chain’s offices, he added.
Fin 24 

Related News

9 safety tips to help curb cash crimes in SA's stores
22/04/2019 - 10:03
Retailers must accept that cash crime is prevalent in SA and not going away any time soon, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.

Asian revenue surpasses European for first time at L’Oreal
18/04/2019 - 09:07
L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy.

Easter is also a feast for criminals, retailers and consumers warned
18/04/2019 - 09:01
There is a tendency among criminals to use the Easter long weekend - and its spike in shopping - to their advantage, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Checkers hot cross buns go viral
17/04/2019 - 13:42
Checkers hot cross buns are trending on social media and South Africans are in stitches following the release of a viral video in which a false-positive breathalyser reading was recorded for a police officer.