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Nakumatt: Another ailing Kenyan company
Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...ndisclosed-nakumatt-debtWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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[quote=hardwood] Quote:A senior Government official has laid bare the extent of Nakumatt Supermarket’s financial woes, revealing the retailer is reeling under a Sh30 billion debt.
This makes the recovery of the regional retail chain, whose debt position in the public domain has been put at Sh18 billion, more tasking.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] Noma...  possunt quia posse videntur
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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The lenders owed money by the retailer are; Standard Chartered Bank Kenya Commercial Bank Stanbic Bank NIC Bank Barclays Bank Diamond Trust Bank. Others are; Bank of Africa Oriental Bank Habib Bank and Guarantee Trust Bank. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Its more than 30B. More like 50B. Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 11/13/2015 Posts: 1,596
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Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out 
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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Ericsson wrote:The lenders owed money by the retailer are;
Standard Chartered Bank
Kenya Commercial Bank
Stanbic Bank
NIC Bank
Barclays Bank
Diamond Trust Bank.
Others are;
Bank of Africa
Oriental Bank
Habib Bank
and Guarantee Trust Bank.
Do the banks protect themselves against a default by requiring security e.g a title deed when lending to SuperMarkets who in principle don't own the supermarket premises or any of their stock?
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Rank: Member Joined: 1/22/2015 Posts: 682
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kawi254 wrote:Ericsson wrote:The lenders owed money by the retailer are;
Standard Chartered Bank
Kenya Commercial Bank
Stanbic Bank
NIC Bank
Barclays Bank
Diamond Trust Bank.
Others are;
Bank of Africa
Oriental Bank
Habib Bank
and Guarantee Trust Bank.
Do the banks protect themselves against a default by requiring security e.g a title deed when lending to SuperMarkets who in principle don't own the supermarket premises or any of their stock? When it's a big name in a "safe" industry, the banks tend to be lax in their collateral requirements(similar case is currently happening with Etisalat Nigeria). Add to that the fact that at this level, even if there is security the banks will take a huge loss in liquidation. There's that old saying, "if I owe the bank one million, I'm in trouble, but if I owe the bank one billion, they are in trouble."
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Rank: Member Joined: 1/22/2015 Posts: 682
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wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out According to this report: http://www.businessdaily...6908-99eg83z/index.html
Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT. How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Mike Ock wrote:wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out According to this report: http://www.businessdaily...6908-99eg83z/index.html
Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT. How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt. 2014/2015....  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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Angelica _ann wrote:Mike Ock wrote:wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out According to this report: http://www.businessdaily...6908-99eg83z/index.html
Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT. How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt. 2014/2015.... too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt punda amecheka
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Rank: Member Joined: 3/9/2010 Posts: 320 Location: kenya
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newfarer wrote:Angelica _ann wrote:Mike Ock wrote:wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out According to this report: http://www.businessdaily...6908-99eg83z/index.html
Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT. How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt. 2014/2015.... too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt https://www.standardmedi...disclosed-nakumatt-debt
Work hard at your job and you can make a living. Work hard on yourself and you can make a fortune.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Ndemo puts it very well here. Over expansion without the reliance of data. Business intelligence is key in today's economy. http://www.businessdaily...11992-xx0rts/index.html
Quote:They have time to turn around but if they delay, some technology company will in the not-too-distant future buy them out and develop a mega platform for distribution. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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newfarer wrote:Angelica _ann wrote:Mike Ock wrote:wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out According to this report: http://www.businessdaily...6908-99eg83z/index.html
Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT. How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt. 2014/2015.... too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt The money is made by Nakumatt owners relaThieves owned suppliers supplying imported products who are paid promptly...remember Ciano and His fresh vegetable supplier side hustle?
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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http://kenyanwallstreet....ay-salaries-installmentsWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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deadpoet wrote:Now it makes sense why there were no eggs at Westgate and Junction on two separate occassions... http://allafrica.com/stories/201708020052.html
Nairobi — Regional retailer Nakumatt Holdings' workers took to the streets across the country protesting over unpaid salaries. Workers in the retailers' branches in Nairobi, Kisumu, and Machakos are also alleging mistreatment by their employer. The workers say that they have been forced to live miserable lives, while others being kicked out of their rented houses for failing to pay rent arrears. possunt quia posse videntur
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Rank: Member Joined: 1/22/2015 Posts: 682
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Now Nakumatt Mega is being chased from their building due to rent arrears. http://www.businessdaily...53310-fsu4ks/index.html
The only move left for these guys is to sell all the remaining stock, pocket the cash, declare bankruptcy and close.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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You will see wonders from september Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:You will see wonders from september What wonders, what do you mean??? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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wukan wrote:Chaka wrote:Lets say the chain was to be liquidated,how would that go with all that debt? [quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity. According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper. Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote] our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail out Where can I get info on what rate the commercial paper was issued at? possunt quia posse videntur
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