Troubled retailer Nakumatt Supermarkets has gotten a reprieve after the High Court issued a ruling in their favour.
High Court Judge Joseph Onguto on Monday issued an order stopping the creditors from attaching the supermarket chain’s property assets to recover their debts.
Delivering the ruling, Judge Onguto also ordered Nakumatt to invite, within a week, all those interested in appearing in the ongoing insolvency case to file their respective claims in court.
“It is hereby ordered that all creditors of the company Nakumatt Holding Ltd are prohibited from conducting any attachment, sequestration, distress and or execution against the company’s assets until further orders of the court,” he ruled.
Among the creditors are High Park Mall and Thika Road Mall that are demanding Sh51 Million and Sh8.8 Million in rent arrears respectively.
Other creditors are Integer who are demanding Sh23 Million and Highport Properties that is seeking Sh5 Million from the Retailer.
In August, Nakumatt suspended more than 30 employees and threatened to fire them on grounds of participating in a strike two weeks ago.
Francis Kamotho, who is the retailer's Human Resource Manager, suspended the employees for two weeks (August 15 to August 30) for what he termed as participating in an "illegal" industrial action.
“You are asked to show cause why disciplinary action should not be taken against you for participating in the illegal strike.
“In the event that your explanation is not received within the stipulated period, it shall be assumed that you have no explanation to offer and disciplinary action shall be taken against you which may include summary dismissal," he stated.
The suspended employees were further warned against visiting Nakumatt stores until the end of the month when they are expected to report to their respective branch managers.
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