A Nakumatt Shop. The firm might be liquidated after its creditors rejected Tusyks offer. [Photo/Nairobinews]
Nakumatta’s problems are showing no signs of ending anytime soon after the firm’s creditors rejected an offer from Tuskys to guarantee its’ debts.
The move has now left the giant firm’s fate in the hands of the court, where Nakumatt had filed a proposal to guarantee debts with its landlords for a period of three months.
However, the creditors argue that the guarantee is not binding since it provides for arbitration in the event that Tuskys fails to meet its obligations.
Tuskys had indicated that it would inject Sh650 million to pay rent monies to 27 landlords and staff salaries.
They had also planned to pump in Sh3 billion to restock Nakumatt, but all were subject to the creditors accepting the terms.
As it stands now, if the creditors that have sued Nakumatta press ahead with the matter in court, it will be the end of the firm, which is considered the biggest in the country.
The retailer has been going through a tough period, having been forced out of buildings for failing to pay rent, with workers going for months without pay.
They have been forced to shut down some branches as a result of the problems they have been facing.