Just On Cosmetics, which has shut down all 43 of its stores leaving 500 employees in limbo, is considering going into provisional liquidation later this week.
Procurement manager Ricardo Calaca said although the Pocot Trust-owned company, which has deep roots in the Eastern Cape, was negotiating with between six and 10 “blue chip” buyers, the possibility remained that it might provisionally liquidate.
“We are meeting constantly to make decisions,” Calaca said.
This comes after the stores, most of which are situated in the Eastern Cape, were abruptly shut on Saturday, September 26 and staff told to go home and “be on stand-by”.
The shock closure sent staff and unpaid creditors into a spin as they faced the prospect of financial upheaval.
Pocot Trust, of which Kempston Group owner Tony Cotterell is one of three trustees, bought Just On Cosmetics a year ago after the once-flourishing business, which sold beauty and household products, experienced hard times following the death of its founder, Mike Naidoo.
Yesterday, one of the 500 staff members who received a September salary cheque but is now at home with no clarity regarding job security said he felt betrayed by the company for which he had worked for 11 years.
Thulani Landzela, 33, who managed a King William’s Town branch of Just On, said he was at work on that Saturday when he received a call from his area manager instructing him to close the store at noon.
He was told to inform staff the shop was closing until further notice and they should remove their personal belongings.
“He said he would come and collect the shop keys because the owner wanted them. It was a shock. The staff were complaining. I don’t know why we were not given more warning. I am not happy at all,” he said.
Landzela is the only breadwinner in his family, which consists of his wife, two children, his mother and two brothers.
“I don’t feel well now to look for a job because I feel confused. I don't know if I’m unemployed, but I do know I won’t get my October salary.
“I have to pay rent and I’m paying off my car and clothing accounts. I won’t be able to pay. We don’t even have termination letters. Christmas is approaching and I have no money in my pocket.”
Landzela said stock, particularly haircare and detergent products, had been in short supply ahead of the closure.
“Every day I had customers shouting at me because we didn’t have the stock they wanted.”
Earlier this week Calaca said the closures were the result of the stores’ biggest supplier, which provided 80% of the stock, having cut credit to the shops despite Just On Cosmetics being fully paid up.
Department of economic affairs, environment and tourism spokesman Tobile Gowa said the department was unaware of the “nitty gritty” of the Just On Cosmetics closures and was not in a position to offer business rescue.
“But we are worried that there is a potential that 500 people could lose their jobs.” — barbarah@dispatch.co.za
Just On may seek liquidation
Procurement manager Ricardo Calaca said although the Pocot Trust-owned company, which has deep roots in the Eastern Cape, was negotiating with between six and 10 “blue chip” buyers, the possibility remained that it might provisionally liquidate.
“We are meeting constantly to make decisions,” Calaca said.
This comes after the stores, most of which are situated in the Eastern Cape, were abruptly shut on Saturday, September 26 and staff told to go home and “be on stand-by”.
The shock closure sent staff and unpaid creditors into a spin as they faced the prospect of financial upheaval.
Pocot Trust, of which Kempston Group owner Tony Cotterell is one of three trustees, bought Just On Cosmetics a year ago after the once-flourishing business, which sold beauty and household products, experienced hard times following the death of its founder, Mike Naidoo.
Yesterday, one of the 500 staff members who received a September salary cheque but is now at home with no clarity regarding job security said he felt betrayed by the company for which he had worked for 11 years.
Thulani Landzela, 33, who managed a King William’s Town branch of Just On, said he was at work on that Saturday when he received a call from his area manager instructing him to close the store at noon.
He was told to inform staff the shop was closing until further notice and they should remove their personal belongings.
“He said he would come and collect the shop keys because the owner wanted them. It was a shock. The staff were complaining. I don’t know why we were not given more warning. I am not happy at all,” he said.
Landzela is the only breadwinner in his family, which consists of his wife, two children, his mother and two brothers.
“I don’t feel well now to look for a job because I feel confused. I don't know if I’m unemployed, but I do know I won’t get my October salary.
“I have to pay rent and I’m paying off my car and clothing accounts. I won’t be able to pay. We don’t even have termination letters. Christmas is approaching and I have no money in my pocket.”
Landzela said stock, particularly haircare and detergent products, had been in short supply ahead of the closure.
“Every day I had customers shouting at me because we didn’t have the stock they wanted.”
Earlier this week Calaca said the closures were the result of the stores’ biggest supplier, which provided 80% of the stock, having cut credit to the shops despite Just On Cosmetics being fully paid up.
Department of economic affairs, environment and tourism spokesman Tobile Gowa said the department was unaware of the “nitty gritty” of the Just On Cosmetics closures and was not in a position to offer business rescue.
“But we are worried that there is a potential that 500 people could lose their jobs.” — barbarah@dispatch.co.za
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