Sneaker retailer Court Order has entered voluntary liquidation, closing all four stores after nearly a decade in business.
Founder Ahmed Seedat told The Witness that its Rosebank Mall, Gateway, Cape Town CBD and V&A Waterfront branches had shut while the business awaits the appointment of a liquidator. Customers and consignors now face uncertainty over outstanding payments and stock.
Why Court Order closed
Court Order connected sneaker buyers and sellers through a selection of authenticated, sought-after shoes. Its business model aimed to keep commissions low while giving consignors a bigger return.
According to Seedat, that approach became unsustainable as the sneaker market slowed. Sales weakened and profit margins tightened, while operating costs remained high.
He told The Witness that attempts to rescue the retailer included raising commissions, borrowing money and seeking investors or a buyer. None secured the outcome needed to keep the business afloat.
Seedat said he had committed his own financial resources and borrowed as much as he could in an effort to save Court Order.
What happens to consigned sneakers?
For people who placed sneakers with Court Order to sell on their behalf, Seedat distinguished between unsold stock and money owed for completed sales.
He said unsold consignment stock still belongs to its owners and would not form part of the business’s assets available to creditors.
Returns would, however, follow procedures set by the appointed liquidator. Outstanding payments for sneakers already sold would be dealt with through the formal liquidation process.
Details about collection arrangements, claims and enquiry channels would be communicated in due course, he said.
Founder apologises for poor communication
Seedat acknowledged the anger and distress experienced by customers, employees and consignors. He apologised for not providing clearer information after the process began.
At the time of The Witness’s report on 20 October, no liquidator had been appointed. Grant & Swanepoel Attorneys were identified as the liquidation attorneys on record.
The business’s ultimate future remained undecided. Seedat said possible outcomes included resuming trade, ending operations or a sale through liquidation.