Nakumatt shuts down top Nairobi store over rent arrears
Retail chain Nakumatt Holdings has closed its Village Market branch due to rent arrears, the latest in a string of store closures by the troubled retailer.
The shut down comes days after its rival Tuskys pulled the plug on a rescue partnership it has been seeking with Nakumatt, pushing the supermarket into deeper crisis.
The retailer, whose operations have come under strain due to its huge debt, has so far closed several stores including Bamburi branch in Mombasa, the Lunga Lunga outlet in Nairobi’s Industrial Area, NextGen (Mombasa Road), Thika Road Mall (Thika Road) and Westgate in Westlands, Nairobi.
At least four landlords have also taken on Nakumatt with multiple suits either seeking to evict the retailer or deny them re-entry into their respective prime malls.
Sabaki River Holdings Limited, the owner of Malindi Mall, South Coast Holdings Limited, which owns Diani Mall, Parkside, owners of Galleria mall and GC Retail the owners of Garden Mall are in court fighting to evict or stop Nakumatt’s re-entry.
Mid last month it emerged that Nakumatt had lost Sh18 billion worth of stock in the year to December 2017.
The revelations is contained in a report that reveals the extent of fraudulent activity that brought the company to near collapse.
Peter Kahi, the court-appointed administrator, has hired experts to conduct a “special audit” into the significant discrepancy in Nakumatt’s books of accounts, which the retailer booked as an adjustment in its accounts for the year to December 2017.