FORMER Tekkie Town executives have accused Steinhoff of defrauding them in swopping their business for Steinhoff shares when it acquired the shoe retailer in 2016. Bloomberg
DURBAN – Former Tekkie Town executives have landed a blow on Steinhoff International and its subsidiary, Pepkor Holdings, after the Western Cape High Court ruled in their favour.

This comes after the former owners and management of Tekkie Town won the interdict application on Friday to restrain Steinhoff International and Pepkor Holdings from dealing with the shares of the Tekkie Town company or with Tekkie Town stores.

Former Tekkie Town chief executive Bernard Mostert said that after a lengthy process the former executives were happy with the interim relief granted to them by the court.

“We are happy that our rights will remain protected as we continue to fight for the return of our Tekkie Town business,” Mostert said.

The judgment stated that the first respondent, Steinhoff International, is interdicted and restrained from dealing with the shares it holds directly or indirectly in any of its subsidiaries or any juristic persons related to it, or permitting them to be dealt with, in any manner which would result in it being unable to give effect to the relief.

Steinhoff International is also directed to exercise the control it has over the second, third and fourth respondents respectively, in such a manner that the shareholding of the second respondent in the fourth respondent is preserved and prevented from being alienated, and/or encumbered in whole or in part, while the fourth respondent is prevented from issuing any further shares in itself.

Pepkor Holdings is the second respondent. Pepkor Speciality is the third respondent, and Tekkie Town is the fourth respondent.

Steinhoff holds a majority stake of 71percent in Pepkor Holdings.

The former Tekkie Town executives have accused Steinhoff of defrauding them in swopping their business for Steinhoff shares when the troubled retailer acquired the shoe retailer in 2016.

With Steinhoff selling its assets in an attempt to raise liquidity after admitting to accounting irregularities in December 2917, the former Tekkie Town executives have been in a battle to retain the business founded by Braam Van Huyssteen.