Moyo restaurants ask for business rescue

Cape Town - Despite heading into peak season the well-known moyo brand of restaurants have commenced voluntary business rescue proceedings on October 1.

The directors of Gootspa Investments and its trading subsidiaries, which trades under the moyo brand, hope this strategy will enable the moyo restaurants to contintue with "business as usual".

"The business rescue practitioners, with the assistance of the company and its directors, will be assessing each of the entities to determine how they can be restructured," the group said.

Stefan Smyth and Alison Timme have been appointed as joint business rescue practitioners to oversee the business rescue process.

"Business rescue affords protection for all key stakeholders’ interests in the business to be understood and protected whilst the optimal solution for all involved is determined," the group said.

"The prospect of preserving employment for over 600 employees and revitalising the business to return to its long term goals is precisely what was envisaged when business rescue legislation was passed some two years ago."

The eight moyo restaurants are situated in the Western Cape, KwaZulu-Natal and and Gauteng.

"The business rescue practitioners have ensured that secure trust accounts exist for deposits for functions and events so that customers can continue to make the most of their moyo experience without any concerns in this regard," said the group.

"Business rescue provides a valuable opportunity for the group to continue to trade through the forthcoming peak trading season, thereby maximising the chances of the group continuing to trade as a going concern and thus preserving jobs."

- Fin24

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