Struggling fashion retailer Deacons East Africa (East Africa) PLC share will remain suspended at the Nairobi Securities Exchange (NSE) until March 2020 after the market regulator extended its suspension by three months from December.
The suspension took effect from 2nd December 2019.
The Capital Markets Authority (CMA) extended the suspension in view of the ongoing turnaround efforts led by administrators from PriceWaterhouseCoopers (PwC). The fashion retailer has been in suspension since November 2018.
Mumias Sugar Company’s share will also remain suspended for a similar period.
In May, it announced an Expression of Interest to sell its business and assets in whole or in part in a public notice. This was after the approval of the Administrators’ proposal by the creditors on January 2019 to undertake a competitive and transparent transaction process aimed at identifying strategic or financial investor (s) with a view to achieving either a recapitalisation of the company through an injection of equity and or restructure of its debt obligations, or a sale of all or some of the stores of the company.
Deacons Plc now operates all the 11 Mr. Price Home and Mr. Price apparel stores in Kenya.
Deacons have franchises for a number of South African brands, including Truworths, Woolworths, Identity, Sheet Street, 4u2, BabyShop, Angelo, Reebok, Addidas, Lifeftness, and Bossini.
The fashion retailer on 23 November 2018 resolved to be placed under administration due to financial difficulties.
