Nakumatt CEO Atul Shah in an interview. [Photo/businessdaily.co.ke]
Nakumatt has received the most sought after reprieve after the High Court on Monday allowed the struggling retailer chain to be put under an administrator.
The decision of the court will now see the near collapse retailer breath since the landlords and other creditors will not be able to take any action against Nakumatt unless by a court order or through the consent of the administrator.
Delivering the order, Justice Fred Ochieng said that the administrator Peter Opondo Kahi will be in charge of the cash stricken entity and within 60 days organize a meeting with all known creditors and serve the court with the meeting’s minutes.
“Within seven days of the creditors meeting, the administrator will provide all the known creditors and all the court with the minutes of the meeting,” the court order reads in part.
It is Nakumatt that had applied to have an administrator appointed to run its operations citing the provisions of section 563 of the Insolvency Act, a move that was tightly contested by creditors who argued that the entity had not shown signs of revival and that they risked losing their resources.