Deacons East Africa (under administration), whose counter was suspended from trading on the Nairobi Securities Exchange, needs about Ksh450 million to finance its short term recovery process
Part of the recovery process will entail downsizing the staff size of the fashion retailer as well as closure of non-profit making stores and some of the firm’s branches in Uganda and Rwanda.
The joint administrators, PKF’s Peter Kahi and Atul Shah, have recommended creditors to convert their Ksh1.1 billion debt into equity.
Profit making stores will however remain during the entire recovery process.
The joint administrators noted that after unsuccessfully exhausting all avenues, they would contemplate liquidating the company.
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— Kenyanwallstreet (@kenyanwalstreet) January 23, 2019
