Johannesburg - The directors and subsidiaries trading under the Moyo restaurant brand have filed a notice to start business rescue proceedings, the group said on Friday.
A business rescue notice was filed with the Companies and Intellectual Property Commission on Tuesday, the Gootspa Investments group said in a statement.
Stefan Smyth and Alison Timme were appointed to oversee the business rescue process and assess how entities could be restructured.
The group said it would still be “business as usual” heading into the peak season.
Secure trust accounts were in place to deposit money for functions and events.
“Business rescue affords protection for all key stakeholders' interests in the business to be understood and protected while the optimal solution for all involved is determined,” the statement said.
“The prospect of preserving employment for over 600 employees and revitalising the business to return to its long-term goals is precisely what was envisaged when business rescue legislation was passed some two years ago.”
There are eight Moyo restaurants -- in the Western Cape, Kwazulu-Natal, and Gauteng.
Section 133 of the Companies Act places a general moratorium on legal proceedings against a company in business rescue.
The act recognises the interests of shareholders, creditors, and employees and allows for them to participate in the development and approval of a rescue plan.
The group said affected parties would be formally notified in due course by means of notices and meetings. - Sapa