The company successfully settled all its Business Rescue obligations, repaying its creditors in full and resolving a Covid-related debt of R140 million (approximately USD 7.7 million). This milestone marks a significant turnaround for the company, positioning it for renewed growth and long-term stability in the post-recovery phase.

Like many businesses worldwide, Gearhouse Group was severely impacted by the sudden onset of the COVID-19 pandemic. By late February 2020, international clients began cancelling conferences and events scheduled in South Africa and within weeks, the full extent of the disruption became evident. By mid-March, cancellations and postponements had wiped out the company’s event calendar and uncertainty loomed.

Recognising the gravity of the situation early, Gearhouse Group proactively engaged its financial stakeholders, including its bank, the South African Revenue Service (SARS) and major creditors, to prepare for potential financial strain. Shortly thereafter, following President Cyril Ramaphosa’s announcement of a national lockdown, the company’s entire order book dropped to zero overnight.

In consultation with its auditors, , Gearhouse Group explored the option of business rescue a structured legal process that allows companies to suspend debt obligations and restructure operations in partnership with creditors. Having exhausted all alternative solutions, the company entered voluntary business rescue in late April 2020.

Throughout the voluntary business rescue process, Gearhouse maintained consistent communication with creditors via the appointed Business Rescue Practitioner, whilst management simultaneously sought potential investors. Although the last major investment proposal fell through in April 2022, a noticeable increase in business activity since February of that year signalled the beginning of recovery. With lockdown restrictions lifting, management proposed a “trade-out” strategy to repay all creditors over time through operational income.

In May 2022, creditors overwhelmingly supported the plan with 99% voting in favour, including both the bank and SARS. This unprecedented consensus reflected the high level of confidence in the company’s ability to recover and trade its way out of debt.

During this period, Gearhouse employees and senior managers demonstrated extraordinary resilience and commitment. Salaries were reduced to 20% for six months, after which a project-based remuneration system was implemented. Despite the hardship, the core team continued working tirelessly, remaining motivated and fully engaged. Transparent communication ensured that staff were kept informed and supported throughout.

By September 2022, Gearhouse Group had returned to full operational capacity with approximately 260 employees around 60% of its pre-pandemic workforce. Many former employees had emigrated or transitioned to other industries, prompting the company to prioritise debt repayment and operational stability before reinvesting in new equipment.

Despite this cautious approach, business rebounded rapidly and 2023 and 2024 became the most successful trading years in Gearhouse’s 34-year history.

Cash flow management throughout the recovery phase required precision and discipline, supported by open communication with stakeholders and the professional guidance of Business Rescue Practitioner, Derek Schickerling. His expertise and confidence in the company’s recovery were instrumental in ensuring a smooth and compliant process.

Gearhouse Group not only met but exceeded its business rescue commitments. The company’s technical capabilities, experienced workforce and strong client relationships enabled it to deliver successfully on major projects even during the most constrained periods.

The crisis also prompted significant internal improvements streamlining operations, reducing costs and establishing a leaner, more agile business model that has strengthened long-term performance.

Before, during and after the pandemic, Gearhouse Group has remained a cornerstone of South Africa’s live events sector, providing world-class technical solutions for large-scale events, conferences and corporate gatherings.

Emerging from its most challenging chapter, the company has since reinvested R260 million in new equipment over the past 3 years while fully honouring all creditor obligations.

Major Gear Investments

Elation Proteus series, Robe Tetra and Robe Moving Lights, Ayrton Rivale Profile fixtures, ETC Halcyon lights, grandMA3 full size console, Roxx Cluster lights, Boreal Mk2 Hippotizers, Pixera media servers, Panasonic and Christie projectors, Barco 40K projector, Barco E2 Gen 2 and E3 controllers, Leyard LED Screens, Absen LED Screens, Meyer Sound systems, Turbosound monitor rig, Allen & Heath Digital Mixers and Stage Boxes, Shure and Sennheiser microphones, DigiCo Quantum 338 consoles, , Clear-Com equipment, L-Acoustics Kara II systems, Stage systems, StageCo equipment, Eurotruss trussing, Chainmaster motors, Blackmagic Design gear, Backline from all leading brands (Drums, Keyboard, Percussion and )

These significant equipment investments have strengthened Gearhouse Group’s technical capacity and ensure the company’s ability to deliver high-quality productions for a wide range of events. By upgrading its technical production capabilities across every discipline, Gearhouse Group is fully prepared to meet the demands of both local and international clients, maintain its reputation for excellence and provide its employees and Gearhouse

In January 2023, Gearhouse proudly re-opened the Gearhouse Kentse Mpahlwa Academy, one of its most valued contributions to the industry. The Academy continues to provide education and practical training opportunities to young professionals, many of whom support their families through their new careers.

Though its impact cannot be measured on a balance sheet, the Academy remains a symbol of Gearhouse’s commitment to empowering future generations and building a sustainable future for the live events industry.