Stanbic Bank has taken over Mombasa-based bakery Bake N Bite after the firm failed to service a loan of undisclosed value.
The lender has subsequently appointed K.V.S.K Sastry as administrator to run operations of Bake N Bite effective November 10, with a view to assessing the ability of the business to meet obligations.
Bake N Bite, a family-owned enterprise, was founded by Seif Mohammad more than 15 years ago and has grown to a chain of 12 bakeries in Mombasa and Nairobi.
Stanbic, formerly CfC Stanbic, declined to reveal the amount overdue from Bake N Bite citing customer confidentiality but said the takeover procedure was guided by the Insolvency Act 2015.
“The powers of the administrator extend to all of the assets and undertakings of the above companies. By virtue of the administration, the powers of the directors in terms of dealing with the company’s assets have ceased,” Stanbic said in a notice.
Bake N Bite had charged its assets to Stanbic Bank for the loan, hence the lender’s powers to appoint an administrator of the firm in the event of insolvency as provided for in section 534(1) of the above law.
The family-run bakery produces bread variants such as white bread, brown bread, British breakfast bread, American sandwich loaf, English milky bread, budget toast, cookies, muffins, and cupcakes.