Deacons East Africa has been put under administration due to financial difficulties and recurrent losses.
This is according to a public notice issued on Sunday, November 18, stating that the company has 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.
The company has also been suspended from trading shares at the Nairobi Securities Exchange (NSE) for 40 days over its financial difficulties.
A public notice from the Nairobi Securities Exchange said the suspension takes effect from November 19.
Read: Deacons’ Executive Joe Sitati Kills A Cyclist After Bribing His Way At NTSA
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.
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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