Administrators of troubled e-commerce platform, Copia Kenya, have stepped up the sale of its assets even as the firm winds up its operations in the country after a decade in business.
KPMG consultants Makenzi Muthusi and Julius Ngonga on Friday put more Copia assets, including furniture, sealing, and coding machines, on sale in a push to conclude the shutdown of the firm’s operations.
Other items listed for sale on Friday include household and construction items, printers, laptops, CCTV cameras, iPads, and water tanks.
The administrators were appointed by Copia’s board in late May to try and steady operations and keep the business afloat.
Hopes of turning around Copia’s business in Kenya, however proved improbable, forcing the administrators to wind it up—an option that will see thousands of workers rendered jobless.
Besides furniture, machinery, and stationery, the administrators are seeking to sell Copia’s e-commerce platform comprising a website, a mobile app, and a USSD code which are integrated.
They are also seeking a buyer of the firm’s brand and intellectual property, a customer base estimated at two million, and an agent network of about 30,000 stores across the country.
Copia Kenya’s financial woes deepened earlier in the year after it failed to raise cash to sustain operations.
“Copia Global, the parent company of Copia Kenya, was unable to attract capital on terms that were amenable to all existing shareholders, funders, and investors. Copia Global is now winding down, leaving Copia Kenya business in a new position to raise capital directly,” the firm said in May when it put the firm under administration.
“The administration will work with management to raise capital from new investors for Kenya business,” it added.
Company administration is a process whereby an expert is appointed to restructure a business by ensuring it is a going concern with the aim of either turning it into a profitable company or effecting a sale of the business to preserve its value.
Administration processes in Kenya started following the enforcement of the Companies Act 2015, giving businesses time to regain footing when troubled.
Previously, firms in financial crisis were placed into receivership which meant the process of liquidating the company started almost immediately with a focus on paying its debts first.
Copia had hinted at the closure of operations when it declared 1,060 workers redundant in mid-May.
“Copia has been suffering financial constraints for some time. Despite our best efforts to navigate this challenge and explore avenues for additional funding, we find ourselves in a position where we must consider far-reaching organisational restructuring to ensure the sustainability of our operations or even possible shutting down of our operations, ”the firm said in the letter to affected workers.
