The directors of Nakumatt Holdings Limited have applied to the High Court for an administration order in accordance with the Insolvency Act.
They have proposed the appointment of Mr Peter Kahi of PKF Consulting East Africa as the administrator.
If the court grants the application, Mr Kahi will oversee Nakumatt's re-structuring in the interest of the retail chain's creditors.
The application for administration will be heard on November 8th by Justice Joseph Onguto of the High Court.
[caption caption="Peter Kahi of PKF Consulting (Centre)"]
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The directors believe that going into administration is a better option than liquidating the company as it will enable them to stay in business and generate revenue to pay off its debts.
A merger with Tuskys (Tusker Mattresses Limited) is also in the pipeline after they wrote to the Competition Authority of Kenya (CAK) seeking approval for the deal.
The merger, if approved, would make Tuskys the country's biggest retail chain.
To add to the company's woes, 19 landlords have this week filed fresh suits seeking to have Nakumatt pay rent arrears worth Sh 596 Million.
The mall owners in Nakuru, Nairobi, Kericho and Kakamega have sued the firm seeking to terminate their leases and repossess the lettable space.
[caption caption="Nakumatt Managing Director Atul Shah"]
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The landlords say Nakumatt's slow demise has seen other businesses within their malls seriously affected by the low foot traffic.
