Nakumatt Fights to Stay Afloat in Rent Arrears

The problems plaguing retail supermarket chain Nakumatt have deepened following an asset seizing operation by one of its creditors, Thika Road Mall (TRM), all in a bid to recover a six-figure dollar sum in rent arrears. TRM, in conjunction with Moran Auctioneers, has taken possession of various goods and equipment belonging to the supermarket. These include office furniture, customer trolleys, trucks, ovens, and other electronic equipment. The scenario has forced the retailer to seek a court order temporarily suspending the auction.
Court documents show that TRM was left with no other choice but to resort to the drastic measure after prolonged negotiations to unlock the rent arrears deadlock failed.
Nakumatt intends to put a stop to the sale of its assets, while also barring its eviction from a TRM owned premises.
Both corporations have asked the court for a negotiation period spanning till July 19th to see if they can solve the issue and subsequently withdraw the suit.
The move comes at a particularly dire time for the retailer, more so because it’s also dealing with another insolvency petition filed by one of its top suppliers, who are claiming an almost similar debt figure to the one above. Economy analysts have warned that Nakumatt could be forced to liquidate its assets.
Reference
http://www.businessdailyafrica.com/corporate/Nakumatt-fights-to-stop-auctioneers-in-TRM-rent-war/539550-3997462-uyivd1z/index.html

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