Troubled Nakumatt postpones date with creditors for second time
Nakumatt has put off the meeting with creditors for a second time pending the completion of an accounts audit.
The firm has sought for the interjection of High Court in rescheduling its long awaited meeting with creditors.
“This is an inadvertent last minute development, as we had expected the process to be complete by now, to allow for the creditors engagement. Creditors will be advised in due course of the new date for the meeting once we have received the audited accounts,” Nakumatt’s administrator Peter Kahi said.
The company’s caretaker Parker Randall East Africa (PKF) was to complete the audit and update creditors later this month.
According to court filings, Nakumatt owes its suppliers, manufacturers and landlords an estimated Ksh.40 billion.
Suppliers include Brookside, Kevian and Tropikal Brands.
Creditors had cast doubt on the retailer’s recovery efforts in their last stakeholder engagement in March last year.
This after the supermarket’s rival Tuskys pulled out of a deal to inject some level of capital.
The administrator faces a daunting task in convincing creditors of the sustainability of Nakumatt.
Majority of Nakumatt outlets were ceded to competitors in the aftermath of the 2018 creditors’ meeting.
The supermarket which once operated over 30 branches in the country is now left with a mere six branches.
The retailer has reported a near break-even in four of the branches, denoting the crucial supply of suppliers’ stock and consumer loyalty.
“Notwithstanding the current state of the business operations, Nakumatt still believes that it has a strong underlying sustainable core business that is capable of a turnaround with the support of all stakeholders,” the retailer said.
For Citizen TV updates
Join @citizentvke Telegram channel
Video Of The Day: Sossion: What is happening to KNUT is a test for labour movement in this country | NEWSNIGHT |