Kenya’s Giant retailer Nakumatt Holdings Limited is due to completely shut down after the company’s creditors have today given the green light for its liquidation. Earlier this week, creditors of the firm had indicated that they will be seeking investigators to trace assets of former managing direcor Mr. Atul Shah.
According to Peter Kahi, the company’s administrator from PFK consulting, 92% of the creditors approved the liquidation. Implying the retailer unable to pay outstanding debt the creditors resolved to dissolve the troubled retailer and use the money to cover for the 38 billion shillings the retailers owes.
Emerging from the creditors’ only meeting to chat the way forward, the lenders, who include banks, suppliers, and landlords, overwhelmingly approved the decision to liquidate the retailer whose performance started going under in January 2018.
This decision constitutes a new blow for the company which had avoided in 2018, the liquidation by obtaining legal protection allowing it to be placed in voluntary administration. This lead to the appointment of Mr. Kahi, at its head, the company hoped to go up the slope, the attempt to rescue through a merger with Tuskys Holdings Limited was unsuccessful.
Having reigned for a long time on the distribution market in Kenya, Nakumatt held its fort on a final 6 branches against 62 during its prosperous period in 2013 as the company tried to regain control of it’s market space.
Its fall in particular favored the entry on the market of new players like French Retailer Carrefour and South Africa’s Shoprite and allowed other local chains like Naivas Supermarkets and Tuskys to expand.
