By Karen Breytenbach
While the insolvent franchisee of three Cape Town branches of the trendy coffee chain Vida e Caffe has been placed under final liquidation in the Western Cape High Court yesterday, the branches are up and running again, under the control of the holding company.
Pursuant to the successful liquidation application by the holding company, the stores in Bayside Mall in Blouberg, on Greenmarket Square and on Church Square near parliament, are now being managed by Vida e Caffe Holdings, the company's attorney Davout Wolhuter said yesterday.
A final liquidation order was made yesterday by Acting Judge Geoff Budlender after the national franchisor last month succeeded in getting a provisional winding up order against franchisee Sweet Beans Trading CC, because of arrears of more than R1 million.
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A number of suppliers, who were also owed money, were granted leave to intervene.
Vida e Caffe Holdings' application related to royalties, service and franchise fees.
The company alleged in papers that Sweet Beans owner Anton Marais had financially mismanaged the shops, damaging its polished national brand.
Marais countered that there was "fraudulent misrepresentation" on the holding company's part about the prospects of profitability within the first two months of trade.
However, allegations levelled against Vida's managing director that the franchisee was induced into entering into the franchise agreements was dismissed by the court.
When Sweet Beans continued losing money, an agreement was made in September that the coffee bars would be run by the holding company.
karen.breytenbach@inl.co.za
- This article was originally published on page 4 of Cape Times on May 15, 2009
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