Struggling retailer Nakumatt Holdings has welcomed a High Court ruling, granting administration orders in respect to the firm and issued earlier today.
The order granted by High Court Judge Fredrick Ochieng follows a petition by four Nakumatt suppliers seeking administration rights as part of a business recovery plan for the retailer.
Nakumatt says the legal development now provides a much needed relief for suppliers among other partners to resume supplies.
Nakumatt Holdings Managing Director, Atul Shah said, “We shall strictly comply with the orders and commit to provide the necessary co-operation to the independent administrator.”
In their petition to the High Court, the four suppliers Ms. Primrose Management Ltd, Sunmatt Ltd, Compulynx Ltd and Jade Concepts had proposed that Mr. Peter Obondo Kahi of PKF Consulting Limited be appointed as administrator.
In the ruling delivered earlier today, the High Court allowed the immediate appointment of Mr Kahi with directions for him to ensure that a creditors meeting is convened within 60days.
“It is hoped and expected that the administration order, if properly executed will be beneficial to all the creditors,” Justice Ochieng noted in the ruling.
With the granting of the orders, Mr. Kahi will act as an independent administrator and perform his functions in the interests of Nakumatt’s creditors as a whole.
