Nakumatt’s second creditors meeting postponed due to financial audit delays

The second Nakumatt Holdings (Under Administration) creditors meeting has been postponed to allow for the completion of an ongoing financial books audit process.

According to the firm’s administrator, Peter Kahi, the second creditors’ meeting, which had been scheduled for this Thursday, will now be held at a later date once the audit process is complete.

The administrator, confirmed that the audit firm undertaking the scrutiny of the retailer’s books covering a period of three years had not completed assignment and is currently perusing through Nakumatt’s 2016/17, 2017/18 and 2018/19 accounts.

“We have petitioned the High Court for leave to postpone the second creditors meeting pending the completion of the crucial financial audit. This is an inadvertent last minute development, as we had expected the process to be complete by now, to allow for the creditors engagement,” Kahi said, adding that, “Creditors will be advised in due course of the new date for the meeting once we have received the audited accounts.”

As per a High Court Ruling last march, the administrator had been directed to ensure the hosting of the second creditors meeting. The meeting was to be undertaken once a clear financial position of the company and an audit had been undertaken by an audit firm through a bidding process and M/S Parker Randall Eastern Africa was selected.

The retailer, Kahi disclosed, has made significant business recovery and is now enjoying an almost breakeven operating position for four of the six operational branches. Two branches are also expected to attain breakeven levels by the end of the year.

He noted that crucial suppliers had responded positively to his call for support, facilitating constant supplies to all the branches with minimal stock outs. “Our customers are also confidently walking to our stores and enjoy convenient shopping founded on the Nakumatt heritage.”

Last year, and while addressing the first creditors meeting convened to update Nakumatt’s suppliers on the ongoing business recovery developments, Kahi had confirmed that plans to maintain the business through a supplier partnership model which is firmly on course.

Notwithstanding the current state of the business operations, Nakumatt still believes that it has a strong underlying sustainable core business that is capable of a turnaround with the support of all stakeholders. Nakumatt considers that administration provides it with the best opportunity to effectively restructure its business.