Over 1,400 businesses in South Africa shut their doors in 2024 – these were the hardest-hit
1,461 businesses have shut their doors this year so far, with the final figures for the whole of 2024 coming in January.
This is according to the data tracked by Stats SA on voluntary and compulsory liquidations through to November 2024.
According to the group, 128 businesses were liquidated in November 2024, down from 196 in October.
The good news is that the numbers are down year-on-year, with 144 liquidations recorded in November 2024.
This is also reflected in the year-to-date data, where the 1,461 liquidations between January and November 2024 are lower than the 1,520 in the same period in 2023.
Following the historical trend, most of the liquidations in November hit the financing, insurance, real estate, and business services sectors the hardest.
This is followed by trade, catering and accommodation.
The same pattern follows for the year-to-date data, with these sectors accounting for about half of all the liquidations in 2024 so far.
The only other sector to record a large number of liquidations YTD is community, social, and personal services.
Because the data tracks a month behind, the full-year data for 2024 will be available in January, though the current trend shows that liquidations were likely slightly lower than in 2023.
2024 has played host to some notable liquidations.
Ellies, once a prominent Johannesburg Stock Exchange (JSE) company, entered liquidation after its business rescue process failed. The company was unable to benefit from the rise of solar energy in 2023.
Sticking with solar, Hohm Energy went into voluntary liquidation due to cash flow issues and mounting debt.
Hohm Energy offered financing options for rooftop solar installations through partnerships with banks like Investec and Nedbank, but it struggled amidst a drop in demand following improvements in the country’s load shedding situation, with now over 200 days of no rolling blackouts.
South African sneaker brand Drip Footwear is also shutting down, with it struggling to pay an R20 million advertising bill, which led to a court-ordered liquidation.
Another footwear retailer Frame Leisure Trading, the operator of The Cross Trainer, also entered liquidation proceedings after an unsuccessful business rescue attempt.
The group struggling with cash flow issues following the COVID-19 pandemic, July 2021 unrest and the poor economic environment in the country.
However, other companies, such as West Pack Lifestyle and Autozone, have escaped business rescue after being bought during their business rescue proceedings.
On top of liquidation proceedings, South Africa also bade farewell to a number of prominent international operations in 2024, with many groups exiting the country.
This includes the likes of Tupperware, Zando, BNP Paribas, HBC and others.
Balancing the scales, the country is also seeing a wave of new entrants opening up shop in the country, including Pret a Manager and JD Sports.
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