Wheels come off retro car company
THEY went from building a retro hotel in Cape Town to facing allegations of failing to pay for retro cars.
Peter and Gary Shaff’s now defunct company, A Million Up Investments, built the five-star 15-on-Orange.
The brothers own MotoStars, which, according to its website, is one of South Africa’s “largest retailers” of classic, vintage, collectable and veteran cars.
Among the models are Aston Martins, Mustangs and Jaguars.
However, clients have claimed that their cars were sold by the company, but they were either never paid or received only some of the money.
German doctor Herbert Peise paid almost R280 000 for a 1988 Porsche in January. He is still waiting for the car to be delivered.
He created a website to warn against doing business with the Shaffs and laid a complaint of fraud with the police. “I trusted these guys. I know them for 10 years,” he said.
Police spokesman Constable Lorencial Johnson confirmed that a case was opened and that the matter was under investigation.
Peter Shaff denied any wrongdoing and said the dispute with his clients was a civil matter. He said he and his brother had started business rescue proceedings — an SOS call when an enterprise is in financial trouble — because the company was “financially distressed”.
Disgruntled clients have resorted to consumer website HelloPeter.com to vent their anger.
“This organisation should be avoided completely and should be closed down. They take people and their precious sentimental assets and destroy the ownership experience with no regard for their customers,” one client writes.
There are those who got some money back after hiring lawyers.
Joerg Duske, who has homes in Germany and Cape Town, claimed that the company sold his son’s Italian sports car for R350 000. MotoStars should have earned R20 000 commission. Only after “putting pressure” on it did he get R100 000 for the car.
“We did some research. He sold the car to a guy in Durban. He acted unlawfully and kept the money for himself,” said Duske.
John Evans of RS Advisers was appointed the business rescue practitioner this week. He said the company matched buyers to sellers, bought and sold cars, and stored cars for individuals.
He said the Shaff brothers started business rescue proceedings because they recognised their close corporation was in financial distress. He said all creditors had been notified of the business rescue and indicated that there were 20 to 30 “motor car creditors”.
He said one of the reasons the company was in financial distress was because it moved from Strand Street in the Cape Town CBD to a less busy location. As a result, sales dropped.
Peter Shaff insisted clients were getting their money. “Five payments are in the process of being made.”
The brothers made headlines in 2012 when A Million Up Investments went into liquidation barely three years after 15-on-Orange opened.
The hotel and its quirky decor is the darling of the hip and young, who unwind in the bar with 20 000 Murano crystals dangling above them.
The hotel is close to the High Court in Cape Town, so a Judges’ Bar has been provided, along with 700 law books.
Last year, Seeff sold two of the hotel’s penthouses for R25.25-million.