The Rhapsody’s franchise could be liquidated after the owner allegedly defrauded investors for millions.
According to papers filed at the High Court in Pretoria, owner Michalis Xekalos allegedly shuffled around investors’ money, sold the same bar more than once to different people at the same time and used company accounts for personal payments, among other allegations, The Star reported today.
He faces criminal charges of defrauding owners of R7.26 million.
He is also accused of selling 115% of the Menlyn branch to four separate investors and getting R6.5 million in the process.
According to the court papers, the franchise was R85 million in debt.
Xekalos told The Star he was not a fraudster, but a man who became involved in too many of the franchises, resulting in its failure.
Xekalos said he had applied for business rescue.
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