Cash constraints facing the Nairobi Securities Exchange-listed firm have led to a decline in stock levels across most stores, leading to reduced margins.
Fashion retailer Deacons #ticker:DCON is to be placed under administration in a move aimed at helping it out of the financial distress facing it.
Deacons chief executive officer Muchiri Wahome in a notice posted Sunday and approved by the Capital Markets Authority (CMA) said the company’s board, during a resolution made on Friday, appointed Peter Kahi and Atul Shah of PKF Consulting Limited as the firm’s joint administrators.
Cash constraints facing the Nairobi Securities Exchange-listed firm have led to a decline in stock levels across most stores, leading to reduced margins.
“The board of directors of the company have resolved that as a result of the financial difficulties being faced by the company, it is in the best interest of the company and its creditors for the directors to place the company into administration subject to compliance with the provisions of the Insolvency Act,” said Mr Wahome in the notice.
“…The primary objective of placing the company in administration will be to enable the administrators to explore the possibility of rescuing the company as a going concern or achieving a better outcome for the creditors than would like be the case if the company were to be liquidated,” he said.
The firm also said that it was not aware of any insolvency proceeding filed against it within the 12 months preceding this latest announcement.
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