Nakumatt creditors on Tuesday voted unanimously to wind down what was once East Africa’s largest supermarket chain after failed attempts to turnaround it’s business.
The liquidation plan was presented by Peter Kahi, the court-appointed administrator saying any further efforts would be very costly.
“An attempted turnaround of the business would be very costly and the company is likely to be lossmaking for the better part of the turnaround window, implying that such a turnaround would need to be financed by additional debt to sustain operations before achieving break-even.”
92% of the creditors with a combined debt value of KSh11.5 billion backed the liquidation. The creditors are owned Ksh 38 billion and the administrators will share about KSh422 million received from the sale of six Nakumatt branches to Naivas.
Diamond Trust Bank (DTB) KSh3.6 billion, KCB Group Ksh1.9 billion, Bank of Africa KSh328 million, UBA KSh126, Guaranty Trust Bank KSH104 million.
Brookside Dairy Limited KSh457 million, Outstand Logistics Limited KSh415 million, Norkan Investments KSh338 million, New KCC KSh290 million, Redstar International KSh261 million.
The court will decide on the liquidator on January 17, marking the formal end of the Nakumatt brands.
Nakumatt Holdings Limited (Under Administration) is a family-owned business that was established in 1987. Until February 2017 NHL had 60 branches across the region (44 in Kenya, 8 in Uganda, 5 Tanzania and 3 in Rwanda).