Smart device repair company WeFix has told MyBroadband that it is in business rescue.
According to WeFix CFO Ariel Kolin, a vote of 99.4% to implement business rescue was passed by staff, creditors, and partners on Friday.
“There’s no secret that both the economy and retail environment have been extremely challenging over the past two years,” said Kolin.
“As 2018 unfolded we accepted the need for guidance as we reset the required infrastructure and expenses.”
Kolin added that the business rescue process is required to save 150 jobs and the business, while simultaneously allowing WeFix to pay its creditors.
Due to the successful vote, Kolin confirmed that WeFix staff’s jobs are safe.
“There is no question about the ability of WeFix to pay salaries – all salaries will be paid, in December and going forward, and shareholders have committed the funding to complete the business rescue process which should conclude end of January.”
WeFix was founded in 2006 and specialises in repairing Apple, Huawei, LG, Samsung, and DJI devices. This includes smartphones, tablets, and MacBooks.
WeFix told MyBroadband earlier this month that it had closed several stores as part of “right-sizing the business.”
Megan Quy, WeFix spokesperson, said the closing of non-profitable stores and stores in close proximity to each other took place.
This was a result of over-saturation, or in certain cases the stores being situated in malls where foot traffic had decreased significantly.
MyBroadband also received information that Blue Label Telecoms is looking to potentially invest, through one of its subsidiaries, in WeFix.
Blue Label is heavily involved in the mobile telecoms space in South Africa, and owns a large chunk of Cell C.
Blue Label told MyBroadband it has no comment about an investment in WeFix.
WeFix, however, confirmed to MyBroadband that it was in discussions with multiple potential new investors.