Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Nakumatt Holdings, once the region’s largest regional retailer has been struggling in the recent past with most of its stores in Kenya, Rwanda and Uganda closed and workers sent away/FILE

Kenya

Nakumatt files for voluntary administration, PKF consultant to take over management

Nakumatt considers that the administration route provides it with the best opportunity to effectively restructure its business/FILE

NAIROBI, Kenya, Oct 31 – Troubled retailer Nakumatt has applied for an administration order under the insolvency act.  

In papers filed at the High Court, the directors of the Supermarket chain have proposed Peter Kahi of PKF Consulting Limited to be appointed as the administrator with a view of turning around the supermarket.

“Kahi is an experienced business turnaround professional and if the application is granted, Mr. Kahi will act as an independent administrator and perform his functions in the interests of Nakumatt’s creditors as a whole,” the directors say.

Nakumatt considers that the administration route provides it with the best opportunity to effectively restructure its business.

“Importantly, pursuant to section 560 of the (Insolvency) Act, while a company is under administration, there is a moratorium on certain legal processes, including a moratorium on enforcement of security over the company’s property or the exercise of a right of forfeiture by peaceable re-entry, without the consent of the administrator or the approval of the court,” states the statement by Nakumatt.

An administration, unlike bankruptcy, aims to rescue the company and gives more control to the directors who have the option of appointing an administrator.

Nakumatt, however, says the move has been necessitated by the need to protect the company, employees, lenders, landlords and suppliers who would suffer loss if the company is wound up.

“The senior lenders are aware of Nakumatt’s financial position and are supportive of Nakumatt’s application for an administration order. Further, Tusker Mattresses Limited has, subject to the competition Authority of Kenya’s approval, undertaken to forge ahead with its investment in Nakumatt in connection with its proposed merger with Nakumatt,” continues the statement.

The firm still believes that it has a strong underlying sustainable core business that is capable of a turnaround with the support of all stakeholders.

Justice Joseph Onguto of the High Court has ordered that the application for administration be heard on November 8, 2017.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...