The suspension of Deacons EA Plc (under administration) from trading its shares at the Nairobi Securities Exchange has been extended by the Capital Markets Authority until 30 November 2019.
The decision was made following a proposal from the joint administrators to appoint an Independent Transaction Adviser and ultimately agree on an actionable timetable in the turnaround process.
“Notice is hereby given on the extension of suspension from trading of Deacons EA Plc shares following a proposal from the joint administrators to appoint an Independent Transaction Adviser, subject to the company trading at a profit by September 30, 2019 and thereafter agreeing on an actionable timetable in the turnaround process,” statement issued by NSE noted.
Deacons Plc woes began in November 19 when it was suspended from trading in the bourse for 40 days and subsequently extended for 10 days ending Thursday.
Meanwhile, the company’s Chief Executive Muchiri Wahome has blamed the cause of the firm’s financial woes to the delay in opening the Two Rivers Mall.
‘The fashion retail company planned to operate four stores at Two Rivers Mall. It invested Ksh400 Million in stock as it awaited the mall’s opening. However, the Kiambu-based mall delayed its open date more than six months. This left the retailer with excess stock and no additional revenue from its investment,” he said.