Deacons East Africa’s Joint Administrators To Seek its Liquidation, Fails to Raise Ksh 450 Million

Deacons East Africa’s Joint Administrators To Seek its Liquidation

Struggling fashion retailer Deacons East Africa (East Africa) PLC would likely be liquidated efforts seeking a strategic investor and sell off part of its assets failed.

Mr. Peter Kahi from PKF Kenya, one of the Company’s joint administrators, confirmed to Bloomberg that the retailer failed to raise KSh 450 Million (US$ 4.15 Million) in its turnaround strategy.

As a result, they will be filing their report in Court recommending its sale.

Deacons Plc 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 debts amounting to Kshs 1.1 billion after it lost its biggest franchise, the South African retailer Mr. Price Limited. 

The fashion retailer’s shares have been in suspension since November 2018.