Naivas has successfully acquired assets of former retail giant Nakumatt, spending KSh422 million for the deal. The retailer now owns six Nakumatt stores valued at almost five times their worth.
Tyson Limited, the property valuer, values Nakumatt Mega, Prestige, Lavington, Kisumu, Embakasi and Nakuru at KSh110.5 million. Nakumatt will use proceeds from the transaction to pay off creditors, set to meet on Tuesday.
“Naivas Ltd now occupies Nakuru, Lavington, and Prestige, purchasing the furniture, fixtures, and fittings and negotiated new terms with the landlords,” Business Daily quotes a notice to the creditors.
The retailer also bought furniture and fittings from the remaining three branches located in Nakumatt Mega, Highridge and Mega-City Kisumu on 29 November 2019 for use in their other stores. Naivas will not occupy these premises.
Retailers like Chandarana and Tuskys also expressed interest in the assets of the former stores. Chandarana offered KSh246 million for the stores whereas Tuskys bid KSh70 million for three stores.
See Also: Nakumatt Bows Out of Prestige Mall as Naivas Takes Over
Naivas also beat the competition in the bidding because of its goodwill towards the purchase. According to Nakumatt’s administrator, Peter Kahi, the retailer paid for location and goodwill, paying a premium for Mega and Highridge.
Nakumatt’s ability to continue as a going concern hangs on the balance after inconsistencies in its financial reports.
An audit by Parker Randall in The Star reveals that financial statements up to February 2018 were prepared to assume Nakumatt is a going concern yet it had net capital deficiencies and recurring losses which raised doubt on its ability to continue as a going concern.
The company’s creditors will meet on Tuesday at the Oshwal center to decide the fate of the retailer’s liquidation.
