I think this is the closest theory to explain nakumatt's predicament.

Or avoiding taxation

They have overstock and end up with alot of dead stock.

Am also thinking the changes in the banking sector are beginning to bite.Banks have become tight with their overdrafts.Both to the supermarket and the suppliers.Banks have lines called Invoice Discounting which are now dying since the margins are low.The banks are also keen on who the Principle is on the Invoice and are not accepting some.That effectively grounds the supplier who is not paid by the Principle on delivery nor the bank advancing them working capital.

We clapped at Interest rates capping but me thinks kunaanza kuharibika.

Really? How is that when all goods they buy are on consignment? They pay once sold...there is no cost to Nakumatt for holding stocks, the cost is on the supplier?

So obviously its not cost of holding stock...its not overheads either because a company like Nakumatt with such a huge positive cashflow (sell on cash, buy on credit) can easily pay overheads.

So why ailing? Where is the cash going?

If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.