GEORGE NEWS - The former owners and management of Tekkie Town were victorious in the Western Cape High Court on Monday 29 April when Judge NC Erasmus interdicted Steinhoff from selling Tekkie Town, or any shares it holds in their subsidiary.
According to the court order, Steinhoff International must exercise its control over Pepkor and Tekkie Town in such a way that Pepkor's shareholding in Tekkie Town is preserved and prevented from being sold or encumbered. Steinhoff must also prevent Tekkie Town from issuing any further shares in itself. The sale agreement in terms of which Tekkie Town was sold by Steinhoff to Pepkor Speciality must be preserved and Pepkor is prevented from alienating the business or its assets, in whole or in part.
Should Pepkor intend to sell or encumber its shares in Tekkie Town or the business, it has to notify all parties that are part of the intended transaction that Tekkie Town is under claim by the former owners of the business.
Fight to regain business
Former Tekkie Town CEO Bernard Mostert commented, "For us it is a very significant step in our fight to regain the business that was taken from us through fraudulent representation. We are satisfied with the relief that we have under this order until such time as our action to cancel our sale contract of Tekkie Town is concluded and the business is restored to us."
Pepkor commented in a short statement that it has never had any intention of disposing of Tekkie Town. "... it still forms part of our growth strategy with more than 30 stores to open during this financial year. We shall continue to grow the business and to take decisions that are in the best interest of Pepkor. We are confident that the legal process to follow will validate the investment we have made in this business."
Riaan van Rooyen, Tekkie Town CEO, recently denied rumours of layoffs at the Tekkie Town head office in George.
He said their move to new premises that are being refurbished in the town centre is going ahead, with all the staff.
In another case filed in the high court, Tekkie Town founder Braam van Huyssteen, former CEO Bernard Mostert and other former management members are fighting to reverse the sale of Tekkie Town in 2016 in which they accepted Steinhoff shares as payment.
The former Tekkie Town management started a new retail chain, Mr. Tekkie, after Steinhoff's shares plunged and became almost worthless. Mr. Tekkie has opened its 23rd store. According to Mostert, should they get their old business back, they will operate both chains.