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Nakumatt: Another ailing Kenyan company
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newfarer
#351 Posted : Wednesday, July 12, 2017 12:43:32 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
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 outsmile smile


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.... d'oh! d'oh! d'oh!

too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt
punda amecheka
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  | | Edit by user: Wednesday, July 12, 2017 12:44 PM | Reason: Not specified
cyruskulei
#352 Posted : Wednesday, July 12, 2017 2:27:55 PM
Rank: Member

Joined: 3/9/2010
Posts: 320
Location: kenya
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 outsmile smile


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.... d'oh! d'oh! d'oh!

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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murchr
#353 Posted : Wednesday, July 12, 2017 11:17:23 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
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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kawi254
#354 Posted : Thursday, July 13, 2017 2:05:20 AM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
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 outsmile smile


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.... d'oh! d'oh! d'oh!

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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Ericsson
#355 Posted : Monday, July 17, 2017 1:56:38 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
http://kenyanwallstreet....ay-salaries-installments
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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WWW
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maka
#356 Posted : Wednesday, August 02, 2017 11:18:30 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
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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Mike Ock
#357 Posted : Friday, August 11, 2017 3:16:27 PM
Rank: Member

Joined: 1/22/2015
Posts: 682
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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Ericsson
#358 Posted : Friday, August 11, 2017 3:30:09 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
Mike Ock wrote:
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.


You will see wonders from september
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Angelica _ann
#359 Posted : Friday, August 11, 2017 3:35:36 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Ericsson wrote:
Mike Ock wrote:
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.


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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maka
#360 Posted : Wednesday, August 16, 2017 12:25:17 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
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 outsmile smile


Where can I get info on what rate the commercial paper was issued at?


possunt quia posse videntur
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