The co-founder of luxury venue Ayepyep Lifestyle Lounge in Cape Town, which closed its doors amid allegations of extortion, has sold his shares for R3.5m as part of a court settlement involving an alleged underworld boss and his wife.
Ayepyep and Kagiso Gerald Setsetse sued Ralf Israel Stanfield, his wife Nicole Johnson, Saadiq Peterson Lee (whose surname is unknown), Barbara Charlotte Johnson and Maputu Violet Sefoka in the Cape Town high court over shareholding in the trendy club.
However, on Tuesday the parties reached an agreement which acting judge Nontuthuzelo Ralarala made an order of the court.
The establishment issued a statement in August, addressed to the president, minister of police, political leaders, artists and business leaders — shared on social media — alleging they were being pressurised by Stanfield.
“We come before you as we find ourselves in a predicament which has escalated into a life-threatening situation for our staff, suppliers and people associated with ... Ayepyep Lifestyle Cape Town,” it read.
The establishment said it had “created more than 600 jobs, 300 temporary jobs, contributed to over 400 artists in South Africa whose services are employed weekly and that it subcontracted more than 200 suppliers.
“Job creation remains one of the country’s significant challenges, yet what businesses constantly must go through concerning current extortion and very little protection from government and law enforcement officials gives us less hope for future business people to thrive in this country,” it read.
“Our brand is well established, but sadly we recently suffered an immense loss of one of the business’s co-founders Oupa Sefoka, popularly known as ‘DJ Sumbody’, who was assassinated in November 2022. As a result we are still picking up the pieces from our loss.
“However, we now find ourselves facing another challenge ... which we believe needs to be addressed in the public domain.”
“Ayepyep Lifestyle Cape Town is under threat from an alleged 28s gang leader ‘Ralph Stanfield’, who is exerting force ... to not only gain a stake in the business but to take over control of the business.”
The establishment said “it is widely known that the man is fearless and the whole city is terrified of him.
“Despite obtaining a high court order restraining him from coming close to the outlet and a criminal case that is opened against Ralph Stanfield and his wife, he has continuously, through his wife Nicole Johnson and all his ... employees managed to always put a threat on the business and those associated with it,” the statement alleged.
Setsetse and business partner Sefoka established Ayepyep in Menlyn, Pretoria. The brand then expanded to Cape Town. Sefoka was shot and killed in November 2022 in Johannesburg.
As part of the agreement, Ayepyep and Setsetse agreed to withdraw the litigation against Stanfield and others. They agreed Setsetse would get one-third of the shares in Ayepyep Cape Town, another third of the shares went to Barbara Johnson and a third to Sefoka’s estate.
“Setsetse hereby sells to [Barbara] Johnson, who hereby purchases one-half of one-third of the ordinary share held by him [comprising 16.665% of the ordinary shares in Ayepyep Cape Town] in return for payment of the purchase price,” the court agreement reads.
“Setsetse hereby sells to estate of late Sefoka, who hereby purchases one half of one-third of ordinary shares held by him comprising 16.665% of the ordinary shares in Ayepyep Cape Town in return for the purchase price.”
The court agreement states that Johnson and Sefoka’s estate would each buy Setsetse’s shares for R1.75m. Johnson and the estate are set to pay the money into a trust account of Setsetse’s attorneys “within three working days after the signature of this agreement by all parties”.
As part of the agreement, Setsetse is to resign as director of Ayepyep Cape Town. “Maputu Violet Sefoka and Barbara Charlotte Johnson are appointed as directors with immediate effect,” the agreement reads.
“Setsetse should make available any and all social media logins for Ayepyep Cape Town, sign all forms to transfer to Ayepyep Cape Town, the telephone line and the contract cell number of Ayepyep Cape Town to the extent that these are not already held in the name of Ayepyep Cape Town.”
Setsetse is also required to take “all reasonable steps to assist in the transfer of all sponsorship arrangements and deals to Ayepyep Cape Town...”
The parties also imposed gagging orders on each other: “None of the parties shall make any media or social media statements about one another unless approved by such other party.
“All parties undertake not to make any adverse statements of any nature about any of the other parties. Ayeyep Cape Town shall not undertake the hosting of any events or promotional activities in the Gauteng province.”
Meanwhile, Ayepyep Menlyn undertook not to host events outside Gauteng.
“Ayeyep Cape Town shall retain for its own use and benefit any and all food and liquor stocks, all fixtures, fittings, furniture, appliances, crockery, cutlery and equipment,” the agreement reads.
“The purchasers shall take all reasonable steps to ensure that Setsetse is released from any liability under any suretyship in his name in respect of Ayepyep Cape Town ... within 10 working days.
“The purchasers hereby indemnify Setsetse against any and all liability of any nature to any third party in respect of Ayepyep Cape Town by way of suretyship.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.