Some of the Nakumatt Supermarket workers who took part in the
demonstration in the city centre on December 7, 2017. PHOTO | SALATON
NJAU
Troubled supermarket chain Nakumatt Holdings suffered yet
another blow Wednesday after a law firm that has been representing it in
court pulled out of the cases.
Justice Fred Ochieng
allowed the firm, Iseme, Kamau & Maema, to cease acting for the
supermarket after advocate Diana Ogulla informed the judge that the
company had been ignoring the firm’s legal advice, “which has made it
impossible for the [law] firm to continue acting in this matter”.
She said their differences on how to handle the matters would not allow the firm to continue acting for the supermarket.
There are about five cases in which the law firm has been representing Nakumatt.
Once
again, through its new advocates, the retail chain revisited the issue
of administration but Mr Justice Ochieng declined to grant the order.
Insolvency petitions
Iseme,
Kamau & Maema has been representing Nakumatt in the merged
insolvency petitions filed by African Cotton Industries and Gold Crown
Beverages, which have so far attracted over 90 creditors who want the
supermarket sent into liquidation.
Other cases the firm
acted for the retailer include a suit stopping the eviction of the
supermarket from Garden City and a labour dispute pitting Nakumatt
against its employees.
Thika Road Mall had attached Nakumatt’s goods and equipment to recover Sh51 million in rent arrears.
The troubled retail chain is suffocating under the weight of debt, estimated at about Sh40 billion.
The issue of administration was first rejected by High Court judge Joseph Onguto, who has since recused himself from the case.
Aid recovery
The
judge Wednesday said Nakumatt had not placed before the court,
sufficient information to show how it plans to settle the debt and how
the planned merger with Tuskys would aid the recovery efforts.
“This
court, therefore, finds that in the present circumstances, the request
for the appointment of an administrator is therefore declined,” said Mr
Justice Onguto.
Justice Ochieng directed that the case to be heard on January 11.
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