Ordeal of a debt as big as the Ritz

Celebrity restaurateur Nicky van der Walt hit two milestones this week: he opened his new eatery in Dubai and paid off a R5m debt that brought him to the brink of sequestration.

Van der Walt told the Sunday Times the stress of the past two years put him in ICU and left him emotionally and physically drained.

“It’s been a rollercoaster ride. It’s taken a toll on me and my family, but we are through it now and happy to close this chapter. I’m not going to sugar-coat it; there were days I felt drained, emotionally and physically.“

Van der Walt, known for his Tang restaurant chain, moved to Dubai with his wife, model Lee-Ann Liebenberg, and their three children two years ago to set up the new restaurant.

At the time, some speculated he had fled the country to avoid his debt, which stemmed from a failed deal to revamp Cape Town’s famous Ritz Hotel.

“We moved to focus on building a R150m project, not evade R3.3m,” Van der Walt said. He had signed co-surety on the Ritz project with businessman Walter Hennig, but the partnership soured, and in 2018 the Cape Town high court ordered Van der Walt to vacate the hotel.

Van der Walt was ordered to pay Hennig R3.3m plus interest, which added up to more than R5m. He was ordered to pay his debt by September 29 or face sequestration.

Explaining why he took so long to repay the debt, Van der Walt said: “I was never aware of this default; it was only brought to my attention in 2022. I was only a 15% shareholder when we signed for [a loan] amount of R4.7m, which in the greater scheme of a R120m project didn’t seem like a lot.

The Ritz was a dream that turned into one of the toughest chapters of my life

—  Nicky van der Walt

“After I left, the Ritz management company never serviced the loan, and eventually the R4.7m became R10.9m and I was on the hook for a third of that. So I was going to fight it tooth and nail and use every available legal remedy. I could still fight it, but I want closure. It’s now paid in full, R5m to be exact.”

Van der Walt said at one point the stress led to his admission to an ICU.

“My body was covered in hives and welts. It was a hard lesson. I got my battle scars, and I now live to tell the tale.

“The Ritz was a dream that turned into one of the toughest chapters of my life. We had high hopes, but it was a perfect storm of challenges, from the fallout with partners and funding issues to unforeseen problems such as furniture supply falling through with a main contractor running away with our money. The Ritz was one of my toughest lessons yet. It showed me how quickly things can fall apart.”

In the midst of his legal troubles, Van der Walt’s newly opened Tang restaurant in Dubai had to close temporarily when the complex it is in underwent a revamp.

The complex reopened this week, and the eatery was launched.

“It’s a mammoth project which is over 1,400m² of prime real estate in downtown Dubai. Building Tang in Dubai was a huge undertaking. Dealing with raising capital, construction, regulatory approvals in a foreign country and the business side was tough enough, but add personal stress from the legal battles back home, and it sometimes felt overwhelming.”

He said he wouldn’t have made it without his support system.

“Having my family with me in Dubai made a world of difference. That balance is a daily struggle, especially with the business demands and pressures we face.

“But Lee-Ann and I are a team and we take it in our stride. We make family time non-negotiable. Family is my priority and everything I do is for them. But Lee is my sounding board and my cheerleader, and she gives good, constructive criticism. We’re anchored in each other.”

The family live on an equestrian estate just outside downtown.

Liebenberg told Sunday Times the venture was a “once in a lifetime dream of Nicky’s, which I fully support”.

“I also saw it as a great opportunity to show my children something new. I see everything as an adventure and an opportunity to grow and learn different cultures and environments.”

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