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CMA Announces 10 More Days Of Suspension For Deacons At NSE

Mr. Muchiri Wahome, Chief Executive Officer, Deacons East Africa PLC.[IMAGE/ COURTESY]

Mr. Muchiri Wahome, Chief Executive Officer, Deacons East Africa PLC.[IMAGE/ COURTESY]
The Capital Markets Authority (CMA) has announced 10 more days of suspension for Deacons from the Nairobi Stock Exchange (NSE)

In a statement CMA said that the move is aimed at allowing the company’s joint administrators stabilise business for the company.

“All shareholders, investors and the general public are asked to take note of the suspension,” read the statement in part.

Deacons was placed under administration in November 18, 2018, due to financial difficulties and recurrent losses.

The company appointed Peter Kahi and Atul Shah of PKF Consulting as joint administrators of the company.

“The primary objective of placing the company under administration is to enable it achieve a better outcome for the creditors than would likely to be the case if the company were to be liquidated,” Deacons CEO Muchiri Wahome said in a statement.

Consequently, the company was delisted from NSE for 40 days with effect from November 19, 2018.

The company reported a loss of Ksh229.5 million in the first half of 2018, as compared to Ksh180.4 million in the same period in 2017. The company attributes its loss to the closure of Mr Price, causing a 20.7 per cent drop in sales.

Read: Why Placing Deacons Under Administration Could Sink It, Never To Recover

The company lost Mr Price partnership to a South African company at Ksh133 million, and is planning to close about four stores as it seeks to cut on operation cost.

Among the branches to be closed include Angelo store at the Junction Mall, 4U2 store at the Capital Centre mall and a discount store at the Thika Road.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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