Revival plans of Deacons East Africa appears to have hit a dead end with its administrators intending to liquidate the firm.
This is after efforts to sell its assets and find a strategic investor came to naught. According to the firm’s joint administrators, a report will be filed shortly with the High Court recommending its sale.
Mr. Peter Kahi from PKF Kenya, one of the Company’s joint administrators, has confirmed to Bloomberg that Deacons failed to raise KSh 450 Million (US$ 4.15 Million) to help in its turnaround strategy.
On 5th March last year, the firm held an Extraordinary General Meeting at PKF Kenya to update the firm’s shareholders on its revival status.
The meeting resolved that for the Company to raise the required KSh 450 Million needed to settle outstanding creditors and secured lenders and utilize the balance towards the working capital requirements, the firm exercises its borrowing powers to raise the required funds.
Deacons, a household retail outlet with outlets in Kenya, Uganda and Rwanda, was placed under administration in November 2018 after losing its biggest franchise, Mr. Price Group Limited, a South African retailer.
Its only assets are fittings at three stores it previously operated. None of these were sold as there were no takers. The landlords want their premises back as rent continues to pile up,” Kahi said.
Deacons is a Kenya-based company that was engaged in the retailing of franchise products.
The firm flagship products included ladies, men’s and children’s clothing, footwear, accessories, toiletries, gifts, home furnishings, cosmetics and sporting goods.
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