Nakumatt Nyali is the latest of the chain’s store to stop its 24 hours operations as the giant continue to incur heavy debts and face looming closure.
The problems at Nakumatt seems to be increasing as the owners remain clueless and desperately beg for a bailout from the government, something which Kenyans have greatly opposed.
The death of Nakumatt is affecting other dependent businesses in the malls which it dominated.
The end of Nakumatt Nyali’s 24 hours operations will greatly affect the night economy of this affluent region of Mombasa.
Email your news TIPS to Editor@kahawatungu.com or WhatsApp +254707482874
This story only ends in one way. A logical conclusion that is. A Hostile takeover!
No investor is going to step in with uh hm Kshs 15B or is it Kshs 30B, (30B = $320 Million dollars)… that is just not going to happen. A very public hostile takeover will take place, and I imagine some local investors are sharpening their swords. The Government will leave it to the Courts as they have very publicly declared they will not disburse any monetary support.
The Governments position is actually right. They can’t bypass struggling Uchumi and KQ to bail out bai (Sic!)
The only hurdle is peaceful elections to be conducted.
The other lingering question is, even after a hostile takeover, what happens to the debt. Nakumatt as it is has no assets, just leased space. Most likely scenario is a major new entrant taking over Nakumatt’s existing outlets, re branding, and the debt, well, the suppliers and banks will just have to forget about it. It will be endless court cases, and the existing management will be declared bankrupt, and the debt will just linger on paper.
Same investors who left Nakumatt will invest in a new Major entrant into the Kenyan market. You can’t leave a gaping NICHE hole in the retail market unfilled if you follow what I mean.
Nakumatt dug it’s own hole. They should have offered shares to the public (as advised) over a decade ago. Now they have no one to turn to for equity. A case of bad management….even an accountant was murdered??!!
Anyway, just my two cents on the matter.
Major new entrant with financial muscle, uhhm, I’ll stake my bet on Carrefour!
Nakumatt will be a fruitful case study for years to come in our boardrooms and universities.
I say it might be liquidated, any takeover would entail taking over the debt. If no bailout/ capital injection is coming in, Nakumatt will die off!
“It’s the economy, stupid!”
Bill Clinton,
Former president of the United States, just before he won the elections