Two creditors Gold Crown Beverages Kenya Ltd and African Cotton Industries have moved insolvency proceedings against Nakumatt Supermarkets at the Milimani High Court in Nairobi.
Gold Crown Beverages says its seeks to recover about Sh 60 Million which has not been paid since January last 2016.
“Gold Crown says that its repeated demands to Nakumatt for settlement of the debt fell on deaf ears, prompting it to serve the retail chain with a statutory demand on June 2, this year. Gold Crown has revealed in fresh court filings that it has over the past two years held back on several bankruptcy offences committed by Nakumatt through failure to pay for tea supplies, forcing it to institute the insolvency petition.” (Business Daily)
According to the Newspaper, “Nakumatt is yet to respond to the petition and the High Court has ordered Gold Crown to advertise its petition to the public before the liquidation proceedings can continue.”
Recent media reports say Nakumatt’s current debt position stands at a massive Sh 30 Billion.;
“Nakumatt owes suppliers Sh15 billion.Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.” The Standard reported.