Nakumatt Supermarket. PHOTO | File

Nakumatt has been facing problems since last year.They have closed several branches countrywide and others across East Africa. Nakumatt Holdings company is facing closure to all branches countrywide. This comes after a series of its branches faced by distributors withdraws from associating with the supermarket.

The Thika Road-based shopping mall, together with Moran Auctioneers, seized a number of Nakumatt’s assets, including six moving trucks, 400 customer trolleys, office furniture, ovens and other electrical appliances, forcing the retailer to rush to court for an order to temporarily suspend the auction.

Court documents indicate that TRM had taken the drastic action after prolonged negotiations to unlock the rent arrears impasse failed.

Nakumatt wants the court to stop TRM’s owners from selling its assets to recover rent arrears, and to bar them from evicting the retail chain from the Roysambu-based facility.

The suit papers show that Nakumatt owed the mall owners Sh51,896,027 by June 7, but do not indicate how long the retailer has been in rent default.

“In view of the said insolvency proceedings, the proclamation notice dated June 8, 2017, violates the provisions of Sections 429 and 430 of the Insolvency Act and the same is therefore illegal, null and void. Nakumatt undertakes to put TRM into funds once the proposed reorganization and recapitalization of Nakumatt’s business is finalized,” the retail chain’s managing director, Atul Shah, says in court papers.

The Nakumatt holding branches countrywide will be closed soon after the directors agree. The Directors are on discuss of changing business model if the business will not be rescued. The Company has employed more than 20,000 employees across the country. 

Post a Comment

What is your say on this

Previous Post Next Post