Nakumatt Proprietor and CEO Atul Shah [Photo/Nation.co.ke]
Nakumatt insolvency suit has taken new twist after the law firm representing the cash strapped retailer filed a suit at the high Court on Wednesday December 20 to withdraw it's services.
The law firm, Iseme, Kamau and Maema Advocates, cited difference in the case approach strategy between the retailer and them ( the law firm) as the course of their withdrawal.
Lead lawyer, Kamau karuri said “Nakumatt has been ignoring and acting contrary to our legal advice making it impossible for us to continue representing them.”
Justice Joseph Onguti had earlier withdrawn from the case after creditors accused him of biasness.
Experts have opposed any initiative of a government bailout for the retailer.
According to Citizen TV, Proprietor and CEO Atul Shah said the law had severely affected the supermarket’s ability to access short to medium term financing that it relied upon to meet its obligations to creditors.
The retail chain owes its creditors over Sh30 billion with Brookside (Sh457 million), furniture distributor Redstar International (Sh261 million), Kisima Management (Sh201 million), New KCC (Sh290 million), Kenindia Insurance (Sh167.2 million) and Nexus Holdings (Sh103 million).
Tuskys had offered to help the firm but talks appeared to have stalled.