Cape Town - Madame Zingara dinner theatre is at the centre of a tug-of-war between shareholders, who want to liquidate the company, and its former managing director, who is hell-bent on saving its reputation.
Notices have been issued to the creditors of the entertainment division of Madame Zingara Holdings, MZ Entertainment (SA) (Pty) Limited, to file their claims against the company. But Madame Zingara’s former managing director, Richard Griffin, who resigned from the company in January, plans to challenge the liquidation.
Read: It's a Celebration at Madame Zingara
In his view the company is not bankrupt. Griffin’s parents are 40 percent shareholders and they and Griffin want an investigation.
In a letter to Madame Zingara’s service providers, Griffin wrote: “We do not believe the situation to be necessary because Madame Zingara as a group of companies is an extremely healthy and vibrant organisation.”
He said the company had a turnover of R150 million in the past financial year. At the height of production, it employed more than 180 staff with a payroll of almost R4m.
Griffin estimates that about 70 suppliers to the company are owed between R6m and R8m. He said none of the debt is long term and suppliers are usually paid within 30 days.
In his letter, Griffin said he had exhausted all avenues of communication with the shareholders to try to prevent liquidation.
He has asked creditors to sign a resolution with another auditor and liquidator to reach a better deal than 5 cents in the rand.
“Although I am and have always been an employee of MZ Entertainment SA, it is a body of my life’s work and I stand by our suppliers and staff who have always been the life-blood of the company,” he said.
Liquidation would not affect restaurants belonging to Madame Zingara Holdings.
In response to Griffin’s claims, Madame Zingara’s financial director Nathan Sarembock would only say he was in discussion with auditors on a pending liquidation and would respond to media queries in due course.
In an e-mail seen by the Cape Argus, another director, Victor Domingues, placed the blame for the situation on Griffin.
“The managing director of the company, Richard Griffin, has resigned and absconded, leaving the company bankrupt. The company now is being liquidated (sic) and as soon the court confirms the liquidator I will give him your details for future payment. I am very sorry about the situation,” Domingues wrote to a supplier in February.
This is not the first time the world’s largest dinner show is under threat of having the curtain drawn on its theatre of dreams.
In 2009, Madame Zingara cc, which used to own the Madame Zingara extravaganza, and of which Griffin was a shareholder, was liquidated. The application was brought by landlords of a premises where the show had hired rehearsal space.
“This time I don’t believe we should be in this position. It’s not necessary,” Griffin told the Cape Argus. “The company has massive resources and the best creative teams in this field in South Africa.”
Griffin said he had resigned over differences with directors over how the company was run.
“I love the company. I care for and I have a responsibility towards it. This is not the time to be closing it, it’s a time to grow it.
“My focus has always been the staff. I don’t want to throw them and creditors under the bus.”
CAPE ARGUS