The East London High Court yesterday provisionally wound up Just On Cosmetics at the behest of the company itself.
The company launched the urgent application because it said it found itself in a dire financial position and did not have the means to meet its co mmitments to trade creditors and capital funders.
In the certificate of urgency, Just On attorney Angus Pringle said a provisional liquidator was urgently required to protect the company’s assets and the interest of the general body of creditors.
Its 43 stores had stopped trading and some 500 employees had lost their employment.
Pringle said incidents of violence and intimidation had already been experienced at two stores in Sterkspruit and Idutywa and the company feared that premises and assets would be damaged.
He said creditors had begun instituting legal proceedings and the winding-up order was necessary to stop the haphazard execution of its assets and the protection of these assets for the general body of creditors.
Investec Bank earlier this week successfully sought an application to perfect its security in terms of a bond it held over the company’s assets.
This entitled Investec Bank, to which the company owes some R41-million, to take possession of all Just On Cosmetic’s movable assets at its more than 40 sale outlets and offices nationally.
Just On Cosmetics MD Craig Hanafey confirmed in an affidavit in support of the winding-up application that the company was unable to pay its debts and was effectively insolvent.
He said it could not repay its long-term liabilities of some R70.7-million or its bank overdraft of R21.9-million.
It could also not pay salaries and had closed all its stores and ceased to trade. The court ordered the provisional winding up of the company. Interested parties were given until November 10 to show why the company should not be finally liquidated.
Court orders Just On’s provisional winding up
The company launched the urgent application because it said it found itself in a dire financial position and did not have the means to meet its co mmitments to trade creditors and capital funders.
In the certificate of urgency, Just On attorney Angus Pringle said a provisional liquidator was urgently required to protect the company’s assets and the interest of the general body of creditors.
Its 43 stores had stopped trading and some 500 employees had lost their employment.
Pringle said incidents of violence and intimidation had already been experienced at two stores in Sterkspruit and Idutywa and the company feared that premises and assets would be damaged.
He said creditors had begun instituting legal proceedings and the winding-up order was necessary to stop the haphazard execution of its assets and the protection of these assets for the general body of creditors.
Investec Bank earlier this week successfully sought an application to perfect its security in terms of a bond it held over the company’s assets.
This entitled Investec Bank, to which the company owes some R41-million, to take possession of all Just On Cosmetic’s movable assets at its more than 40 sale outlets and offices nationally.
Just On Cosmetics MD Craig Hanafey confirmed in an affidavit in support of the winding-up application that the company was unable to pay its debts and was effectively insolvent.
He said it could not repay its long-term liabilities of some R70.7-million or its bank overdraft of R21.9-million.
It could also not pay salaries and had closed all its stores and ceased to trade. The court ordered the provisional winding up of the company. Interested parties were given until November 10 to show why the company should not be finally liquidated.
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