Owners of Fruit & Veg City Store Liquidated
The Grahamstown High Court has liquidated the company that owns the Fruit & Veg City (F&VC) franchise in King William’s Town.
According to court papers, F&VC franchise holder Dartingo Trading 164 owed mother company F&VC Holdings, over R313000 in royalties, service fees and produce. The store also owed other creditors over R1,1 million.
Mother company lawyer, Mark Nettelton, said the application by his client to have Dartingo Trading liquidated was urgent, as Dartingo continually failed to meet its weekly financial obligations.
Director of F&VC Holdings in Cape Town, Nigel Meintjes, said in an affidavit that in terms of its franchise agreement with F&VC Holdings, Dartingo was liable for two percent of its net sales.
Dartingo was also reported to be liable for the purchase of fresh produce from F&VC Holdings.
He said Dartingo’s trading record had been extremely disappointing, and soon after taking over the franchise in September 2008, the company had run into trouble.
Save for one payment of R10000 on May 12, 2009, (Dartingo Trading) has failed to meet its weekly obligations to make payment of royalty and service fees to (F&VC Holdings), said Meintjes.
He said that even if Dartingo Trading found a purchaser for the business, the price would not come close to Dartingo Trading’s overall indebtedness.
Source: Daily Dispatch