Nakumatt lost Sh200m in Nyali branch eviction

Supermarket chain Nakumatt lost goods worth Sh200 million during its eviction from City Mall Nyali branch in March 2018 after it defaulted on rent.

Stocks at the branch were thrown out by Makuri Auctioneers amid heavy security after being hired by the landlord, Ideal Locations Limited.

Nakumatt had failed to meet its lease obligations for the upmarket branch, with the debt having risen to Sh27.8 million.

The retailer revealed details of the branch losses in financial statements that were prepared ahead of a recent creditors meeting that resolved to liquidate the company.

“On March 7, 2018, Nakumatt Nyali branch, having inventory with a value of Sh208,116,566 was looted after being ejected from its premises. The management estimates the extent of the loss at 100 percent,” reads a section of the report.

Nakumatt, which is under administration, has been struggling owing to massive debts owed to creditors.

The retailer’s assets at its remaining six branches have been sold to Naivas Limited which emerged with the highest bid of Sh422.5 million.

The company’s negative equity had risen to Sh29.4 billion in the year ended February 2019, indicating the large losses creditors are set to suffer from the company’s collapse.

Creditors, including banks, suppliers and investors in commercial paper, were claiming Sh35.8 billion by the time the supermarket chain was placed under administration on January 22, 2018.

The shareholder deficit was driven by a collapse of sales as the company shut down stores after losing the support of banks and suppliers on whom it had defaulted.