Kahi takes over Nakumatt management
Ailing retailer Nakumatt has a new man at the helm as begins its long journey back to recovery.
Peter Kahi from PKF Consulting will now run the show as the administrator for Nakumatt taking over from long serving Managing Director and owner Atul Shah.
The move comes just two days after the court granted Nakumatt an administration order it had been seeking to buy it time to get its financials in order.
Nakumatt is faced with a debt estimated at Sh40 billion with the retailer facing a tight squeeze in the wake of massive eviction from its key outlets.
Speaking during the handover, Mr Kahi said the first step would be to renegotiate with suppliers and landlords to buy into the recovery strategy.
“I appeal especially to the suppliers to continue supplying us with their products and I can confirm that all new supplies will be paid as payments determined,” Mr Kahi said.
“I equally appeal to the landlords of the branches which have been shut to reopen so that we continue fast tracking the restocking program so that our customers come back to the shops,” he added.
The independent administrator has scheduled a meeting with all suppliers on January 31 to structure new supply contracts.
While welcoming the administrator, Mr Shah noted that the structure will serve to accelerate and complement ongoing recovery efforts.
“I am confident that the entry of an administrator provides the best recovery option for all stakeholders. The administration will allow the business to accelerate ongoing recovery efforts particularly branch restocking and related efforts that are currently underway,” Mr Shah said.
Nakumatt was granted an administration order that gives it financial headroom by averting possible liquidation and closure of further branches.
The retailer has been focusing its program in eight key branches but plans to expand this with the entry of the administrator.
Nakumatt is currently engaged in a partnership deal talks with Tuskys that could see a possible merger of the two retailers.
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