March,03,2021 The high court is set to decide whether Nakumatt will have its term extended or dissolved following a Sh35 billion debt that led to its collapse. Peter Kahi of PKF who is a court-appointed administrator argued that an extension could help in recovery of more funds and pursue pending court cases for and against the retailer with creditors.
Stating that the extension is “ultimately towards a dissolution,” Kahi has since 2018 overseen some Sh5.2 billion come into Nakumatt accounts including a Sh50 million loan from the struggling Tuskys franchise and Sh558 million in the sale of assets such as the remaining branches and stocks.
He also cited that the retailer has no property to be sold or distributed to creditors.
Kahi further quoted the exit of Tuskys support, supplier pullout and evictions as some of the reasons of the turnaround failure.
Tuskys pledged to guarantee as much as Sh3 billion of debt and inject Sh650 million short term capital into Nakumatt in a dealthat was tipped too be a life-saver for the beleaguered retailer.