Troubled regional retailer Nakumatt has surrendered seven branches and retained a similar number in a new rescue plan that the firm’s administrator says is not dependent on any external capital injection or bank borrowing to succeed, the Daily Nation reports.
Peter Kahi, the retail chain’s administrator, in a fresh affidavit filed in court says Nakumatt’s revival is well on track, noting that he has settled all post-receivership salaries and supplier debts.
The High Court in January allowed the appointment of an administrator to run Nakumatt’s affairs, a move that was seen to offer the once giant retailer a lifeline after it threw into disarray landlords who were queuing to evict the supermarket from their premises.
Some landlords, however, returned to court and obtained orders to throw out the firm.
“That the company did not see it prudent to oppose, where efforts to fight the leases would be in vain as otherwise, it was wise to concentrate on the core business of the company and run the same efficiently,” says Mr Kahi in an affidavit filed on Tuesday.
The seven branches that he has given up are Nakumatt galleria, Garden City, Kakamega, Eldoret Household, Ridgeways, Karen Crossroads and Cinemax.
He says he has already stocked the seven remaining stores, which the landlords have renegotiated and indicated they will not take adverse actions, noting that the post-receivership rents for these remaining branches have been cleared.
The retained branches are Nakumatt Embakasi, Mega, Lavington, Prestige, Kisumu City, Nakuru and Ukay.
