Wazua
»
Investor
»
Economy
»
Nakumatt: Another ailing Kenyan company
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
If Nakumatt fail to get a strategic investor they will shut down. The debts are really choking them Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Veteran Joined: 11/13/2015 Posts: 1,590
|
Ericsson wrote:If Nakumatt fail to get a strategic investor they will shut down.
The debts are really choking them The only retail that works in kenya are the small convenient stores. You scale and the margins will not work.
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
Nakumatt has been mismanaged and the 40 days have caught up. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
wukan wrote:Ericsson wrote:If Nakumatt fail to get a strategic investor they will shut down.
The debts are really choking them The only retail that works in kenya are the small convenient stores. You scale and the margins will not work. Nonsense....scaling up works as long as you dont steal your cashflow. Simple. Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Member Joined: 5/8/2007 Posts: 709
|
KulaRaha wrote:wukan wrote:Ericsson wrote:If Nakumatt fail to get a strategic investor they will shut down.
The debts are really choking them The only retail that works in kenya are the small convenient stores. You scale and the margins will not work. Nonsense....scaling up works as long as you dont steal your cashflow. Simple. the issue with nakumatt is that the owners raid the bank account as they wish. A withdraw of 1.5b this month another of 1.2b the following months have led to this.
|
|
|
Rank: Veteran Joined: 11/13/2015 Posts: 1,590
|
KulaRaha wrote:wukan wrote:Ericsson wrote:If Nakumatt fail to get a strategic investor they will shut down.
The debts are really choking them The only retail that works in kenya are the small convenient stores. You scale and the margins will not work. Nonsense....scaling up works as long as you dont steal your cashflow. Simple. I think let me limit my contribution. Too many politicians on this forum 
|
|
|
Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
|
KulaRaha wrote:wukan wrote:Ericsson wrote:If Nakumatt fail to get a strategic investor they will shut down.
The debts are really choking them The only retail that works in kenya are the small convenient stores. You scale and the margins will not work. Nonsense....scaling up works as long as you dont steal your cashflow. Simple. Was wondering how advantages such as bargaining power(with suppliers to the point of bullying them to accept 90 day payment terms) turns into a disadvantage
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
@Lolest The suppliers have found better paying customers i.e who will pay earlier than 90 days. The next demise to Nakumatt will be when shoppers start shunning its branches and go to alternatives Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
Ericsson wrote:@Lolest
The suppliers have found better paying customers i.e who will pay earlier than 90 days.
The next demise to Nakumatt will be when shoppers start shunning its branches and go to alternatives Its not so much about payments being made earlier than 90 days rather, payments being delayed by over 90-100 days. I dont know why Nakumatt feels that they have to be in every mall. "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
.
|
|
|
Rank: Hello Joined: 4/18/2017 Posts: 2
|
Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months 
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Hii si kiosk "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
.
|
|
|
Rank: Elder Joined: 2/16/2007 Posts: 2,114
|
May be the cash needs to earn interest? GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
|
Chaka wrote:May be the cash needs to earn interest? GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Its a cash flow management tactic.. To ensure that the firm is aware of its full obligations to suppliers in advance. However, I do not support delays above the stated credit period
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
obiero wrote:Chaka wrote:May be the cash needs to earn interest? GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Its a cash flow management tactic.. To ensure that the firm is aware of its full obligations to suppliers in advance. However, I do not support delays above the stated credit period I don't think it's cashflow management. I suspect this is another Chase Bank only instead of depositors you have suppliers and banks. The suppliers are being paid pyramid style, you collect from John to pay Peter etc. the same unsustainable cycle that was employed by Uchumi until collapse. But I wish them well, hope their new investors don't back out after auditing books as has happened before with KK, Orange and Chase.
BBI will solve it :)
|
|
|
Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
|
murchr wrote:GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Hii si kiosk managing a supermarket is not an easy job. you are dealing with thousands of products and hundreds if not thousands of suppliers.profit margins quite low with industry average of 15% .pilferage by staff and customers is common occurrence wiping out these sorry margins. managing such diverse supplier base and stock management isn't a joke operating expenses to maintain some sanity in operations very high. the moment you touch working capital and use it in capex is the moment the thousands of suppliers come calling and empty shelves pap https://asokoinsight.com...-after-high-costs-kenya
from a revenue of 51 billion you make only 300 million.thats supermarket business for you punda amecheka
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
2012 wrote:obiero wrote:Chaka wrote:May be the cash needs to earn interest? GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Its a cash flow management tactic.. To ensure that the firm is aware of its full obligations to suppliers in advance. However, I do not support delays above the stated credit period I don't think it's cashflow management. I suspect this is another Chase Bank only instead of depositors you have suppliers and banks. The suppliers are being paid pyramid style, you collect from John to pay Peter etc. the same unsustainable cycle that was employed by Uchumi until collapse. But I wish them well, hope their new investors don't back out after auditing books as has happened before with KK, Orange and Chase. Correct!! Shareholders siphon money monthly and that affects even basic cashflow as you can't keep milking a cow that hasn't been rested or fed. Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
KulaRaha wrote:2012 wrote:obiero wrote:Chaka wrote:May be the cash needs to earn interest? GEORGEWACHIRA wrote:Sometimes it's hard to understand these guyz everything delivered is paid on credit and yet some products will hardly last onto shelves even a day whats the point of paying such suppliers after three months Its a cash flow management tactic.. To ensure that the firm is aware of its full obligations to suppliers in advance. However, I do not support delays above the stated credit period I don't think it's cashflow management. I suspect this is another Chase Bank only instead of depositors you have suppliers and banks. The suppliers are being paid pyramid style, you collect from John to pay Peter etc. the same unsustainable cycle that was employed by Uchumi until collapse. But I wish them well, hope their new investors don't back out after auditing books as has happened before with KK, Orange and Chase. Correct!! Shareholders siphon money monthly and that affects even basic cashflow as you can't keep milking a cow that hasn't been rested or fed. Add employees to that, they steal stocks left right and centre. And because of weak corporate governance and a management style that involves hiding profits to avoid taxes, the directors never get to learn of staff fraud until its too late. Remember the internal auditor who was shot, I also here many Nakumatt managers already own some tier 2 supermarkets all over Nairobi. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Veteran Joined: 3/27/2009 Posts: 1,437
|
Ericsson wrote:@Lolest
The suppliers have found better paying customers i.e who will pay earlier than 90 days.
The next demise to Nakumatt will be when shoppers start shunning its branches and go to alternatives Happening.
|
|
|
Rank: Elder Joined: 3/29/2011 Posts: 2,242
|
Iganamagana wrote:Ericsson wrote:@Lolest
The suppliers have found better paying customers i.e who will pay earlier than 90 days.
The next demise to Nakumatt will be when shoppers start shunning its branches and go to alternatives Happening. Very true. They even lack basic necessities like milk. The in-house bakers have closed shop in some branches. "Things that matter most must never be at the mercy of things that matter least." Goethe
|
|
|
Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
|
Gathige wrote:Iganamagana wrote:Ericsson wrote:@Lolest
The suppliers have found better paying customers i.e who will pay earlier than 90 days.
The next demise to Nakumatt will be when shoppers start shunning its branches and go to alternatives Happening. Very true. They even lack basic necessities like milk. The in-house bakers have closed shop in some branches. I stopped shopping there when they stopped stocking my favourite brands of milk, majani chai, sugar etc. They no longer have variety. Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
|
|
|
Wazua
»
Investor
»
Economy
»
Nakumatt: Another ailing Kenyan company
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|