Nakumatt Supermarkets has ceased operations after creditors approved sale of assets to clear outstanding debt amounting 38 billion shillings.
The move follows a meeting between Administrator Peter Kahi and the creditors Tuesday who approved the liquidation process in a unanimous decision.
The court is now expected to issue a directive on how the process will be conducted. In a meeting Tuesday, Nakumatt creditors converged in Nairobi to vote on the future of the retailer after years of push and pull.
With the retailer unable to pay outstanding debt the creditors resolved to dissolve the troubled retailer and use the money to cover for the 38 billion shillings the retailers owes.
Emerging from the creditors’ only meeting to chat the way forward, the lenders, who include banks, suppliers, and landlords, overwhelmingly approved the decision to liquidate the retailer whose performance started going under in January 2018.
However, Kahi, says he will be seeking High Court clarification in the liquidation process that will see Nakumatt sell its assets, distribute cash to creditors and fold up business.
Kahi was nonetheless skeptical on whether sale of assets will raise enough cash to pay off the huge debt as the current assets are not enough to be used as collateral for the money borrowed from its creditors which is at the centre of once giant retailer in the country.
The High Court is expected to make a determination on 17th of this month. This will give the directive on who will conduct the liquidation process and how it will be conducted.