Lekau Sehoana is facing a number of personal problems. Image via Instagram: @LekauSehoana
Eish! Drip footwear founder Lekau Sehoana sued for 34% of his business
A Pretoria businessman is demanding 34% of Lekau Sehoana’s Drip footwear company following an unmet loan agreement that was first made in 2019.
Lekau Sehoana is facing a number of personal problems. Image via Instagram: @LekauSehoana
Freddy Lekau Sehoana has inspired thousands of South Africans with his story of rags to riches. He has opened a number of stores around South Africa and is even doing some high-profile celebrity collaborations but has seemingly run into some trouble. A local businessman is demanding 34% of the sneaker brand following an unmet loan agreement.
Drip footwear owner Lekau Sehoana has some legal trouble
Freddy Lekau Sehoana has been sued by a Pretoria investor, Alfred Mashiya, who is demanding 34% of the company after he invested R45 700 in the business in 2019.
According to reports, the two met at Menlyn Mall in Pretoria and entered into a “contract of investment” loan of R45 700 to pay for 200 pairs of sneakers that had already been manufactured and were ready to be sold.
The money was to be paid back along with R18 000 interest by December 2019 and Sehoana was also meant to pay Mashiya R100 from every pair of the first 5000 sneakers that were sold.
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Sunday World reports that Sehoana agreed to give Mashiya 5% of the company shares should the payment be 24 hours late and then an additional 1% for every day the payment was delayed. According to Mashiya, he was not paid the R100 from the 5000 sneakers and is now entitled to shares in the business.
“In light of the breach and as per the contract, I’m entitled to 34% of Drip Footwear company calculated from the 1st of August 2020, being the date of the breach until the day of the fourth day of September 2020, being the date which I instructed my attorney to execute a letter of demand to have the second respondent issue the demanded shares of the company into my name, the demand which the second responded ignored.”
Sehoana shares his response
Sehoana confirmed that he was served with the papers and that he did borrow the money from Mashiya. However, he maintains that he had paid back the loan and the R18 000 interest before December 31 2019 but was unable to give Mashiya R100 for the first 5000 sales because of Covid-19 and unexpected expenses.
Also according to Sehoana, he and Mashiya agreed on different contract terms and settled on him paying Mashiya R200 000 in July 2020 and R300 000 in November 2020.
Sehoana said he then paid only R100 000 because the shoe sales had not generated R500 000 but he made the whole payment after he received a letter of demand from Mashiya’s lawyers.
Despite making the outstanding payment, Mashiya is still demanding 34% of the company, Sehoana says.
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