Liquidate Nakumatt to end its debt misery, demand creditors

A deserted Nakumatt Supermarket in Nyali, Mombasa. FILE PHOTO | NMG

What you need to know:

  • The creditors Tuesday told High Court judge Louis Onguto that they intend to have the insolvency petition against Nakumatt determined with urgency, going against the retailer’s Monday application to have an administrator appointed to run the business.
  • Nakumatt’s recent meeting with creditors to draw a roadmap for settlement of their debt resulted in a stalemate after they argued that the retailer is undeserving of more time to pay their debts.
  • The retailer has been negotiating with creditors in the hope of getting them to stop the liquidation proceedings and allow it time to recover without much success.

Nakumatt’s creditors have rejected the supermarket’s bid to appoint an administrator to run its business until it returns to profitability arguing that liquidation is the only viable means of getting the troubled retailer out of its misery.  

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