Ex-Tekkie Town execs planning Concourt help
This after SCA ruled in favour of Pepkor
FORMER Tekkie Town executives plan to turn to the Constitutional Court after the Supreme Court of Appeal ruled in retailer Pepkor’s favour.
A restraint of trade was issued against Mr Tekkie founders Braam van Huyssteen, Bernard Mostert and three other ex-Tekkie Town management members. Pepkor Holdings said yesterday it welcomed the court ruling.
Pepkor said in 2018 it obtained an urgent interdict from Judge Elizabeth Baartman for a restraint of trade, which order was taken on appeal by the previous owners and management of Tekkie Town.
“The decision by Judge Baartman that a specified range of footwear should be removed from the shelves of Mr Tekkie stores was now confirmed by the Supreme Court of Appeal,” Pepkor said.
The long battle between the parties dates back to 2016 when the former Tekkie Town shareholders exchanged all their shares for 43 million shares in Steinhoff, valued at R3.3 billion at the time.
But the collapse of Steinhoff in December 2017 as a result of the accounting scandal meant that the value of the shares suffered and this led to the former Tekkie Town shareholders claiming they were misled by Steinhoff and its former chief executive, Markus Jooste.
“The Supreme Court of Appeal found that the order made by the lower court conveys with sufficient clarity what is required of the previous owners and management of Tekkie Town, namely not to be involved in any business like Mr Tekkie that offers for sale footwear that the Tekkie Town business offered for sale on October 1, 2016, or before. The practical result of this ruling is to confirm that Van
Huyssteen and Mostert’s Mr Tekkie, which they started after selling Tekkie Town to Steinhoff and Markus Jooste, has to remove all the stock from the shop floor as stipulated by Judge Baartman in her ruling,” Pepkor said.
The group said this was the second recent judgment where the courts had ruled in its favour and was very satisfied with these outcomes, which displayed a fair commercial environment where the rule of law prevailed.
“The Pepkor group will continue to protect its rights and interests and is confident that the legal process and system will continue to deliver justice,” the group said.
However, Bernard Mostert said the judgment was confusing in that it did not actually address the fact that no list existed, which detailed the range of footwear that should be removed from the shop floor.
“Annexure A of the order is blank and that Steinhoff-controlled Pepkor’s attempt to have Annexure A amended at a later stage was dismissed by Judge Baartman. It is regrettable that Pepkor… would not disclose this in their announcement. They are fully aware that no list exists and they are fully aware that their attempts to have a list added to the court order at a later stage were dismissed,” Mostert said.
Mostert added that they would appeal the ruling at the Constitutional Court.
Pepkor shares closed 0.90 percent higher at R11.15 on the JSE yesterday.