Former Steers, Debonairs operator set for wind-up

A Debonairs branch along Waiyaki Way in Nairobi.

A Debonairs branch along Waiyaki Way in Nairobi.

Hoggers Ltd, a franchise that operated outlets under the popular South African fast-food brands Steers and Debonairs Pizza in Kenya, is facing liquidation from a debt of more than Sh258 million.

Hoggers has been under receivership since October last year after South African franchisor, Famous Brands, took direct control of over seven outlets in Nairobi from it in November 2019.

A law firm, Kieti Law LLP on Friday asked creditors or contributors who wished to support or oppose the liquidation suit to apply to join the case, scheduled for hearing on Friday.

Owen Koimburi has been the administrator of the distressed firm since October 2020.

A report Mr Koimburi presented to the court in March showed that the popular fast-food operator has total liabilities of Sh258.2 million against Sh119.3 million worth of assets.

He also said the assets available to the unsecured creditors amounted to only Sh8.6 million against a total unsecured creditor balance of Sh226.7 million.

Mr Koimburi had successfully stopped all attachments of the firm’s assets, arising from court cases, pending determination of the liquidation proceedings.

Justice Alfred Mabeya also confirmed Mr Koimburi as the provisional liquidator and tasked him to trace, collect, recover, protect and preserve all the assets of the company pending determination of the petition.

The judge said that evidence before him showed Hoggers couldn’t meet its financial obligations.

Trouble for Hoggers started in 2017 after Steers closed its Wabera Street and Kenyatta Avenue branches. Termination of the franchise spelt trouble for the popular fast-food chain. It later went under receivership.

Real-time footage

Creditors include Diamond Trust Bank (secured), Alkhaleej General Traders, The Hub in Karen, which is owed Sh48.4 million as per court records, Property House Ltd, and the Oval Management, who were its landlords, seeking more than Sh22 million for rent.

Tourism Fund also joined the case, saying the company was eligible to pay a two per cent tourism levy as per the law and Hoggers owed the government Sh168 million as of March 2021.