Kenya based Nakumatt has agreed to surrender four branches in leased properties to concentrate on strategies that can enable it stay in business and stand growing competition in Kenya’s retail market, the Standard reports.
Nakumatt currently facing financial problems has been in court fighting eviction from some of its premises in major towns like Mombasa and Nairobi.
Through a court session, the retailer revealed that it has surrendered branches in Gallaria Mall, Karen Cross Road branch, Eldoret premises and Kakemaga’s Holdent Mall.
The retailer through administrator also indicated signs of surrendering premises at the Malindi Mall, Hillpark Towers in Nairobi, High Port Limited among others.
Nakumatt has so far closed nearly 17 branches across the region including Uganda and Tanzania in a move linked to accumulating rent arrears.
Branches in Nanyuki, Village, Acacia, Victoria Milimani Malls have been shut. Other branches closed include Lunga Lunga, Thika Road Mall, Haile Selassie, Next Gen, Kisumu Mega, Kisii and the Nakumatt Junction branch in Nairobi.
In January, the high court appointed administrator Peter Opondo Kahi to oversee the recovery efforts at Nakumatt Holdings.
In compliance with the Court Order, the Administrator’s primary objective for the administration will be to explore business recovery avenues for Nakumatt Holdings as a going concern.
This is aimed at achieving a better result for the Company’s creditors which would have been impossible; had the Company been wound up.
Speaking during a handover ceremony following a Board meeting at Nakumatt Headquarters, Mr. Kahi confirmed that he shall be hitting the ground running.
“As I take over the management function, I am confident that the elephant is regaining the energy and will soon be in good health with the support of loyal shoppers, dedicated staff, committed suppliers and other partners,” Kahi said.