More than 20 franchisees have had their assets attached and others are still waiting for the deposit they put down for franchises that never existed
Thuli Nhlapo
Two years ago Nikki Rossi said “look what London Pie has brought me to” before he shot himself in front of staff at the franchise company’s head office.
“We understand Mr Rossi had personal problems. We do not believe that London Pie is in any way responsible either legally or, to us more importantly, morally for what occurred. We sympathise with his family for this tragic occurrence,” says London Pie representative Elvis Presslin.
However, his widow, Elizabeth Rossi, is adamant that her husband died because of problems he had with London Pie. “They gave him an ultimatum. It was after an argument with them over the telephone that he took his gun and drove to their offices where he killed himself.”
For two years London Pie ignored all correspondence from the Rossi family representatives to assist the widow in trying to wind up the estate.
Rossi says London Pie has not answered the estate lawyer’s letters, the latest dated January this year, about the financial position of the business and also turned away potential buyers without giving reasons.
The deceased estate continues to pay the lease for Rossi’s London Pie Bus in Cramerview but Rossi does not receive financial benefits.
Presslin said last week that London Pie had made a proposal to the estate and were hoping for a settlement soon.
When asked about London Pie franchises’ survival rate, Presslin said 80 of their franchises were operating successfully. Rossi’s Cramerview business was not profitable.
More than 20 London Pie franchisees have had their assets attached after they failed to generate an income.
“I was told that within three months I will make a turnover of R140 000 but it took 18 months. I ran short of capital because I invested everything I had in the business. Now I have lost my business, house, cars, insurance policies and unit trusts,” says Rob Winstanely (63), who is now looking for any job to survive.
Presslin said in the past two years London Pie has closed only three shops that were located in the Johannesburg CBD.
“That was due to the unpredictable change in areas of location, lack of cash in hand for consumers, and owner-operator mismanagement,” he said.
Ephraim Lukoto, who put down a deposit of R50 000 for two London Pie outlets in the CBD, refuted Presslin’s statement. “I was promised that the two franchises, the Pie Stop in Bree Street and Tiffy’s Pie in the Old Arcade between Market and Commissioner streets had a turnover of R50 000 but the truth was they hardly reached R20 000. The equipment was not in good working order and no refurbishments were made to the shops up until London Pie took over the management.”
Lukoto presented an invoice dated March 7 1997 to Future Bank, with a list of 10 pieces of equipment amounting to R115 000, and his signature at the bottom. He denied signing the invoice and said he never received the equipment.
“The invoice is for the Pie Stop at the corner of Eloff and Commissioner streets and that was not my shop,” said Lukoto.
He claimed that London Pie promised to service his loan with Future Bank and pay his landlord after they took over the management of the shops. A letter dated March 23 1999, from FBC Fidelity Bank to London Pie’s managing director, Herbert Wolpe, read: “We accept the offer for R100 000 for the equipment in the store corner Bree & Eloff. The fact that London Pie Company is managing the other store and earning an income from it without servicing the loan with the bank, as well as the fact that no payment was made to us, is unacceptable.”
Lukoto said he believed that “London Pie is not interested in settling the matter” after Wolpe failed to attend all meetings arranged to resolve the issue.
“I still owe Future Bank the same money I owed them when I first bought the franchise. All London Pie’s promises have not been honoured. I live in fear that my house could be attached anytime,” Lukoto said.
While some London Pie franchisees complain about misrepresentation of projected figures, others have been waiting to get back the deposit they put down for franchises that never existed.
Tony de Oliveira claims he put down a deposit of R140 000 for a London Pie fran- chise but after a lot of delays and unfulfilled promises he decided to pull out. “I have been waiting for my R40 000 for the past five years because London Pie only paid back R100 000.”
Frieda Lewis said Wolpe slammed the telephone down on her last week after telling her trying to get her deposit back was “futile”.
Lewis claims she paid R50 000 for a franchise in Centurion but four years later no building has been erected and London Pie has not refunded her money.
Marianne Bambury, who closed her London Pie shop in Edenvale last year, said: “Herbert Wolpe has a lot to account for the suicide of Nikki Rossi and the financial ruination of countless other families. He must be brought to book.”
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