THE sudden closure of the exclusive Pencil Club left the establishment's 89 employees jobless last month.
However, a ray of hope has since emerged for them in the form of a crowdfunding campaign launched by the club's members, and some of its lifetime members have also joined the initiative.
In their pursuit of justice, the 89 former employees have also approached the Commission for Conciliation, Mediation, and Arbitration (CCMA).
The matter is scheduled to be heard on Thursday.
Moved by the plight of the staff who kept the wheels of the club turning, the members of the club took it upon themselves to assist former employees.
The crowdfunding effort has provided much-needed relief for the workers, especially those in junior roles such as cleaners, waitresses, and bartenders, who received their full salaries from the funds raised.
Middle management received at least 70% of their February pay, while senior managers were given 50%.
An ex-member, who wished to remain anonymous, explained to the Daily News why they decided to lend a helping hand.
“We decided to unite and assist the workers who were suddenly left without jobs so they would at least have something to eat. The crowdfunding made a significant difference, especially for those who didn’t even have groceries,” the source said.
Through the initiative, some of the club's former workers have since found employment elsewhere.
“This has helped those who were able to find new jobs. We’ll continue to assist others who are still unemployed. This is a tragic situation. Many members lost their hard-earned money when the club was liquidated,” the ex-member added.
The prestigious club, located in the business hub of uMhlanga, north of Durban, was liquidated in February.
Questions were raised about how its financial management had gone awry, given its estimated multi-million-rand operations, which made it seem a financially viable operation.
Founded in 2021, the Pencil Club aimed to create a unique space for connection, catering to a mix of business professionals, creatives, philanthropists, and socialites who collaborated at the venue. Its clientele also included government departments and other corporate giants.
Membership to this exclusive club came at exorbitant amounts, which ranged from R100 000 to R900 000 for ordinary members. The top-tier lifetime membership packages started at R1 million and beyond.
In its prime, the club offered members access to high-end facilities, including a library, cigar lounge, beauty and fitness areas, two restaurants, three bars, private dining spaces, intimate meeting rooms, event venues, and a rooftop area with a pool.
Lifetime members enjoyed additional perks compared to regular members.
Business rescue practitioner Eugene Nel described Pencil Club's situation as "hopeless" in media reports.
A high-ranking former representative of the club declined to comment, instead directed the Daily News to Dheshan Pillay, one of the club’s directors.
Pillay said: “We will provide a more detailed response in due course. In the meantime, shareholders have come together to ensure that staff were paid for February. We continue to work tirelessly to raise the necessary funding to re-launch The Pencil. Key meetings are being held this week that will determine the future of The Pencil - whether liquidation proceeds or a solution is found to preserve the business.”
When the club shut down in February, many workers expressed anger, claiming they had received no prior notice.
Speaking with the Daily News on condition of anonymity, said:
“We had no idea that our salaries wouldn’t be paid. The company mishandled the situation. I don’t know how I’ll provide for my child this month,” said one the club's former employees.
Another worker expressed frustration over being treated poorly for months. “There were times when we were only paid half our salaries without any explanation. This month, they did the same. We showed up for work in our uniforms, expecting to be at our posts, only to be told that the company had been liquidated,” they said.
This was despite the club’s branding as the "home to business professionals, creatives, philanthropists, and socialites."
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