Tag: Nakumatt

Naivas, Cleanshelf open new branches in Nakuru, take over spaces of struggling Tuskys, Ukwala

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KENYA – IFC backed Kenyan retailer Naivas Supermarket has opened its fourth store in Nakuru town, as local chain Cleanshelf opens its inaugural store in the same region, central of Kenya. The new stores steam up competition in the town which hosts other retailers such as WoolMart and QuickMart who have two branches each, while homegrown Gilanis has maintained its only branch. According to reports by Business Daily, Naivas’ and Cleanshelf’s new branch have occupied spaces vacated by Tuskys and Choppies owned Ukwala respectively. Troubled Tuskys supermarket exited Nakuru town,…

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Kenya’s retailer Ukwala mulls exiting business over unpaid debts

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KENYA – Kenya retailer, Ukwala Supermarkets has applied to the court for the permanent closure of business revealing that it was unable to finance its nearly US$10 million accumulated debts, reports Business Daily. Ukwala director Vijay Jayantilal Dodhia attributed the fate facing the firm on heavy losses as a result of hard economic times and unfair business competition from other players. In November 2017, the retailer filed for liquidation informing the court that it was unable to remain afloat after accumulating debts amounting to US$9.28 million against its assets valued…

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Audit shows Nakumatt lost US$178 million in fraud

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KENYA – Retail chain Nakumatt has suffered about US$178 million in a fraud, which the management in a report attributed to stolen goods lost through shoplifting and petty thievery from employees, according to the Standard Digital report. The claims have left auditors who conducted an audit on the struggling retailer alarmed. This has left the audit firm, PKF with a resolve to conduct a ‘special audit’ for the retailer’s book expressing their dissatisfaction on how pilferage could lead to such a huge loss. “Enquiring of management of the significant adjustment…

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Shoprite takes up Westgate and Garden City spaces

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KENYA – South African retailer Shoprite will take up the Westgate and Garden City; as part of the two of seven prime spaces that Shoprite had secured at shopping malls in Kenya, targeting its retail market. According to real estate firm Knight Frank, the company’s entry will hot up competition in Kenya’s retail sector. “Shoprite’s entry is expected to stiffen competition in the shopping centre market, which experienced a tough year in 2017 as some household brands faced financial difficulties. Shoprite brings a new offering into the market and retail…

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Nakumatt bid to sack 800 sparks war with union

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KENYA – Troubled retailer Nakumatt has embarked on a massive layoffs plan targeting 800 employees in a move that has triggered a vicious war with the workers’ union. The company’s court-appointed administrator, Peter Kahi, said the layoffs are in line with the rescue plan he has crafted for the business that nearly collapsed under the weight of debt. “As part of the business recovery strategy, we have commenced a rightsizing exercise. This exercise is geared to aligning the human resource base with the current organisational needs,” Mr Kahi said in…

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Tuskys takes over management of Nakumatt’s operations

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KENYA – Nakumatt Holdings Administrator Peter Kahi has announced the appointment of Tusker Mattresses Limited as the new managers for the troubled retailer. Mr Kahi said in a statement Friday that the appointment, which is subject to regulatory approvals, will see Tuskys assuming operations management aspects for the troubled retailer. To that effect, Tuskys and Nakumatt have submitted a fresh application to the Competition Authority of Kenya (CAK) asking to be allowed to partner in a rescue plan for the supermarket chain mired in debt. Mr Kahi said he will…

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Carrefour spreads wings in Kenya amidst Nakumatt woes

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KENYA – Carrefour, one of the largest hypermarket chains in the world, has opened its fourth outlet at Junction Mall in Nairobi, Kenya amidst struggling local retail sector in Kenya that has prompted closure of some outlets belonging to giant retailers. Carrefour has taken up the space that was vacated by Nakumatt Holdings allegedly due to debt woes. The local franchise held by Majid Al Futtaim will first utilize a partial selling area of 1300 square metres selling selected product range before completion of refurbishment 4700square metres space that will see the…

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Regulator rejects Tuskys-Nakumatt  deal, asks for revision

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KENYA – The competition regulator has rejected retail chain Tuskys’ proposed merger with troubled Nakumatt Supermarkets, arguing that the application for regulatory review was done under the wrong clause of the antitrust law. In a letter to the two retailers seen by the Business Daily, the Competition Authority of Kenya (CAK) has advised that a fresh application be made for an exemption from regulations on anti-competitive behaviour rather than approval for the merger they had sought. The CAK reckons that the proposed transaction does not amount to a merger since…

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Choppies builds US$200m war chest for branch expansion

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KENYA – Botswana’s Choppies plans to open between 20 and 25 branches in Kenya, as it races to take advantage of the market gap created by woes facing Nakumatt and Uchumi. The retailer, which is largely a budget store with operations in seven African countries says it has Sh20 billion (US$200m) to pump into its expansion in Kenya in the next three months. The firm says it will give a major facelift to its 11 branches it bought from Ukwala, and convert most of them into convenience and express stores. It will also be moving into the middle…

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Tuskys faces probe over Nakumatt stocking plan

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KENYA – The competition watchdog is investigating a deal in which supermarkets chain Tuskys is funding the restocking of troubled rival Nakumatt for possible breach of anti-trust regulations. Tuskys on Saturday announced that it had started restocking two of Nakumatt’s prime Nairobi outlets with the intention of including even more stores across the country. Sources familiar with the matter indicate that the Competition Authority of Kenya (CAK) is investigating the deal between the two rival retailers for what could amount to collusion by competitors. CAK director-general Wang’ombe Kariuki has repeatedly…

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