Nakumatt Junction closed as retailer's cash troubles persist

The cash strapped Nakumatt Holdings has closed its branch at The Junction on Ngong Road, Nairobi.

This came days after the retail chain merged with Tuskys amid constraints of cash flows posing it for trouble with suppliers.

The management, in a notice pinned at the premises, said the store will be closed with effect from October 1.

"The premises will be closed to the public from October 1 and no trading will be permitted in the premises," they said.

"Nakumatt directors and authorised agents and employees will be permitted access to the premises."

"This will be for the purpose of removing the tenants stock, items and property from the premises," the notice says.

Nakumatt reached an agreement with Tuskys to take over its management in a bid for the troubled retailer to remain afloat.

The agreement will see the retailer access stock from suppliers using the Tuskys supermarket goodwill and value chain.

It said that it had relinquished its rights over the premises pursuant to surrender notice dated September 15.

This will go a long way in helping the chain restock as suppliers had shied away from supplying them due to mounting debts.

Read: Tuskys to help Nakumatt stay afloat, TRM branch closed

The Tuskys team's key assignments being dealing with suppliers who have been threatening to liquidate Nakumatt to recover their delayed funds.

On Friday, Nakumatt got a reprieve after the High Court granted it more time to negotiate with its landlord over rent arrears amounting to Sh6.6 million.

Justice Joseph Onguto directed Nakumatt and South Coast Holdings Limited to negotiate and see whether they can reach an agreement before he gives further directions.

More on this: Nakumatt given time to hold talks with landlord in rent dispute

Source