The historic family-owned Twee Jonge Gezellen wine-producing business has been placed under provisional liquidation after it emerged that it was in dire straits financially and had only R1 million “at its disposal”.
The provisional liquidation, made an order of the Western Cape High Court earlier this month, comes after the owners of the estate made attempts to try to save the business.
In an affidavit before the court, sole director and shareholder Nicolas Krone said Twee Jonge Gezellen’s financial difficulties started when it suffered a loss of earnings of R21.6m after it was supplied with contaminated bottles.
This led to lengthy unsuccessful litigation and an additional R1.5m in suppliers’ costs, which it was ordered to pay. “The legal battle crippled the applicant,” he said. Later, it started falling into arrears with its repayments to the Land and Agricultural Bank of SA (Land Bank). This led to litigation and, in terms of a high court judgment, the business owes the Land Bank R38m.
According to Krone, he and his wife had already exhausted their pension funds and personal savings to invest in the business. He said that they had only R1m at their disposal. Recent audited financial statements were not available, he said.
The case returns to court on October 27, when interested parties have to show cause why a final liquidation order should not be granted.
Source: ARGUS
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