As reported by Moneyweb on Thursday 24 May, longstanding deli and café brand Melissa’s is facing closure due to insolvency.
The company started in 1996 in the Mother City by husband-and-wife team Melissa and Mark van Hoogstraten, with the opening of its first store on Kloof Street. It’s since grown 19 stores strong across four provinces – one of the latest being in Ballito, KZN. The brand also supplies deli products to hundreds of retailers across the country and runs its own e-commerce website. In 2016 Melissa’s introduced a new concept with the opening of Mantra Café in Camps Bay. It has been confirmed that this restaurant will not be affected by the liquidation and will remain open.
Moneyweb also reported that liquidator Craig Hathorn, of Lynn and Hathorn Incorporated, has confirmed the insolvency so far of the three CC-owned shops. According to him, the situation is “currently under investigation, with a comprehensive report on the much-loved brand’s downturn to its creditors expected by the end of July”. Hathorn also noted that the brand was “hopelessly insolvent” and that they are looking at selling “the whole, or parts, of the business” in order to maximise value for its creditors.
The brand itself is yet to provide comment on the reported liquidation but certain independently owned franchises have come forward to say that they will remain open and ultimately operate under a new name.
Stay tuned to Eat Out for further developments.
Sad news, the end of s Capetonian institution, used to dash up Kloof St from the airport to acclimatize!!
Sadly they didn’t pay their staff very well.
Introduced Australian family to Melissa’s in Ballito while staying in unique Zimbali. They were impressed by both. The Ballito one has become part of our lives. Sad news about the franchise.
My best friend and I became part of the furniture when Melissa’s Kloof at opened.
Then things started changing and prices became ridiculous. Pity
Sorry
arrogant people. They were unapproachable.
There are many folks in this wonderful country of ours who are making great products. creating employment in the process – and subsequently need their brand to obtain recognition. Melissas did obviously not intend to do that. Woolworths they are not. They took great products and then put their name on it. I believe that you take a product with potential , promote that in your outlet and in the process enhance your standing as a responsible and insightful retailer as well as obtaining sales for yourself and the emerging brand. You give and you receive. Greed was at the root in my opinion. Why hide from people – your customers – where the product originated from. That is lying in a ……. sort maybe kind of yea that will pass for great business – got to drive the right car – have the clothes and chat to those happing people kind of way.
My opinion completely.
It is a shame, but to be honest, they had plenty of time to do something about it. The stores started going downhill sometime ago, service was poor, heavens you only had to look on the web! Great shame I loved it before the decline.