Executives give Tekkie Town the boot
CAPE TOWN - Steinhoff Africa Retail (STAR) has confirmed the resignation of Tekkie Town CEO Bernard Mostert, the COO, Dawie van Niekerk, CIO Willem Wait and chief procurement officer, Mike Brown.
Additionally, as 100 staff members staged the walk-out.
According to Fin 24, this is due to the disagreements between STAR bosses and Tekkie Town’s founder and former STAR Property Division chair Braam van Huyssteen, who resigned from this position last month.
Van Huyssteen was removed from his position as chairman of the Speciality Fashion and Footwear division by the Star executive.
Mostert confirmed to Fin24 that he resigned from his position, adding that the higher-ups made his position and the continued growth of the business untenable.
“Myself and the COO have been in partnership in that business for a long time. We have reached a point where it has been impossible for us to achieve the desired results for the business in a meaningful way, because of the actions of people at STAR due to the treatment of Mr Van Huyssteen and ourselves,” Mostert told Fin24.
According to a statement, Star acknowledged the resignations, which took place with immediate effect. An interim management team led by Riaan van Rooyen (currently the operational director at Ackermans) has been deployed.
“Tekkie Town is an important part of Star, and further support will be provided to Tekkie Town, as required, through Star’s extensive operational capability,” the statement said.
“Tekkie Town is an important part of STAR, and further support will be provided to Tekkie Town, as required, through STAR’s extensive operational capability. Tekkie Town will continue operating business as usual,” said Spokesperson for STAR Stella Wink in a statement.
According to Bloomberg, Tekkie Town operates 368 out of STAR’s 5,100 outlets and contributes about 3% to annual revenue.
STAR, which also owns clothing chains Pep and Ackermans, has been trying to distance itself from its scandal-hit parent Steinhoff International Holdings NV, which in December reported accounting wrongdoing that wiped more than 95% off its market value.
It’s said it shouldn’t be held liable for the claim by Tekkie Town founders led by Braam van Huyssteen, which relates to an earn-out agreement after Steinhoff bought the company in 2016.
- BUSINESS REPORT ONLINE, BLOOMBERG