MOYO, the famous South African restaurant brand, has commenced voluntary business rescue proceedings.
The directors of Gootspa Investments and its trading subsidiaries, which operate under the Moyo brand, have eight restaurants situated in the Western Cape, KwaZulu-Natal and Gauteng.
"Business rescue affords protection for all key stakeholders’ interests in the business to be understood and protected while the optimal solution for all involved is determined," the company said.
The necessary resolution was filed on October 1 with the Companies and Intellectual Property Commission.
"The prospect of preserving employment for more than 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 company said.
Stefan Smyth and Alison Timme have been appointed as joint business rescue practitioners who will oversee the process.
According to the company, business rescue provides it with the opportunity to trade through the forthcoming peak season, thereby maximising Moyo’s chances of continuing to trade as a going concern, and thus preserving jobs.
Moyo, which serves African cuisine, was established in 1998 by Jason Lurie as a small 120-seater restaurant in Norwood, Johannesburg.