Media statement:
The founder of Tekkie Town, Braam van Huyssteen, and the former owners and management of the footwear retail group, have reached a settlement with Steinhoff Group that will see them support the Steinhoff Group Settlement.
“There are a number of factors that contributed to our decision to reach a settlement with Steinhoff and its subsidiaries, including Pepkor,” says Bernard Mostert.
“Foremost, among these factors, is that we are privileged to enjoy great momentum in our new business. An increased focus coupled with the proceeds of the settlement, and without the distraction of litigation, will enable us to amplify that momentum. In little less than three years, we have grown from zero stores to more than 160 stores and 800 wholesale accounts. With the litigation handbrake dropped, we can ramp up this business tremendously and significantly add to the almost 1000 jobs we have created since August 2018.”
An equally important consideration was the fact that our participation in the settlement will allow South African class action participants to share in the settlement proceeds. This will address, to some degree, the losses they suffered at the hands of the Steinhoff scandal.
“We hope that this landmark and historical litigation will pave the way for legislation that will not hobble the man on the street to successfully participate in recovery processes of this nature. To that end we respect Steinhoff’s final position to accommodate this class of claimant in the Steinhoff Global settlement.”
In as far as their relentless request and endless litigation to have control of the Tekkie Town business restored to them, Mostert said, “We were very happy to run this process to the very end, as it was the most logical and rational remedy available to us. However, we have come to expect the unexpected. One such conclusion is that successful litigation and the return of control of the business would probably negatively impact the momentum that we enjoy in our current business. Our focus is now on moving forward and we take pride in the fact that we have built a successful business and are eager to do so for the second time.”
“Wherever Tekkie Town may go and wherever Pepkor may take it, we are proud that we delivered it in good shape. Our journey in building it and fighting for it has shown how much we care for Tekkie Town and we wish them well taking it forward without us.”
Also read:
- Bernard Mostert on Steinhoff as court grants embroiled retailer leave to appeal
- The Great Steinhoff settlement debate – Piet Viljoen and Bernard Mostert
- ‘Ultimately, we want the restoration of our business from Steinhoff’ – Tekkie Town’s Bernard Mostert
