Kenya: Nakumatt Files for Voluntary Administration, PKF Consultant to Take Over Management

One of the Nakumatt outlets in Kampala.
31 October 2017

Nairobi — 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.

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.

See What Everyone is Watching

More From: Capital FM

Don't Miss

AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.