wazua Mon, Aug 21, 2017
Welcome Guest Search | Active Topics | Log In | Register

19 Pages«<16171819>
Nakumatt: Another ailing Kenyan company
Ericsson
#341 Posted : Tuesday, July 11, 2017 11:45:16 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,359
Location: NAIROBI
The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...ndisclosed-nakumatt-debt
Chaka
#342 Posted : Tuesday, July 11, 2017 11:54:27 AM
Rank: Veteran


Joined: 2/16/2007
Posts: 1,816
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]
maka
#343 Posted : Tuesday, July 11, 2017 11:57:12 AM
Rank: Elder


Joined: 4/22/2010
Posts: 9,995
Location: Nairobi
[quote=hardwood]
Quote:
A senior Government official has laid bare the extent of Nakumatt Supermarket’s financial woes, revealing the retailer is reeling under a Sh30 billion debt.

This makes the recovery of the regional retail chain, whose debt position in the public domain has been put at Sh18 billion, more tasking.

According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.


Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]

Noma...Sad
possunt quia posse videntur
Ericsson
#344 Posted : Tuesday, July 11, 2017 11:58:44 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,359
Location: NAIROBI
The lenders owed money by the retailer are;
Standard Chartered Bank
Kenya Commercial Bank
Stanbic Bank
NIC Bank
Barclays Bank
Diamond Trust Bank.
Others are;
Bank of Africa
Oriental Bank
Habib Bank
and Guarantee Trust Bank.
KulaRaha
#345 Posted : Tuesday, July 11, 2017 12:42:10 PM
Rank: Elder


Joined: 7/26/2007
Posts: 5,849
Its more than 30B. More like 50B.
Business opportunities are like buses,there's always another one coming
wukan
#346 Posted : Tuesday, July 11, 2017 1:18:58 PM
Rank: Member


Joined: 11/13/2015
Posts: 338
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile
kawi254
#347 Posted : Tuesday, July 11, 2017 6:41:10 PM
Rank: New-farer


Joined: 2/20/2015
Posts: 92
Location: Nairobi
Ericsson wrote:
The lenders owed money by the retailer are;
Standard Chartered Bank
Kenya Commercial Bank
Stanbic Bank
NIC Bank
Barclays Bank
Diamond Trust Bank.
Others are;
Bank of Africa
Oriental Bank
Habib Bank
and Guarantee Trust Bank.


Do the banks protect themselves against a default by requiring security e.g a title deed when lending to SuperMarkets who in principle don't own the supermarket premises or any of their stock?
Mike Ock
#348 Posted : Tuesday, July 11, 2017 9:40:45 PM
Rank: Member


Joined: 1/22/2015
Posts: 479
kawi254 wrote:
Ericsson wrote:
The lenders owed money by the retailer are;
Standard Chartered Bank
Kenya Commercial Bank
Stanbic Bank
NIC Bank
Barclays Bank
Diamond Trust Bank.
Others are;
Bank of Africa
Oriental Bank
Habib Bank
and Guarantee Trust Bank.


Do the banks protect themselves against a default by requiring security e.g a title deed when lending to SuperMarkets who in principle don't own the supermarket premises or any of their stock?


When it's a big name in a "safe" industry, the banks tend to be lax in their collateral requirements(similar case is currently happening with Etisalat Nigeria). Add to that the fact that at this level, even if there is security the banks will take a huge loss in liquidation. There's that old saying, "if I owe the bank one million, I'm in trouble, but if I owe the bank one billion, they are in trouble."
Mike Ock
#349 Posted : Wednesday, July 12, 2017 12:09:37 PM
Rank: Member


Joined: 1/22/2015
Posts: 479
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


According to this report:

http://www.businessdaily...6908-99eg83z/index.html

Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT.

How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.
Angelica _ann
#350 Posted : Wednesday, July 12, 2017 12:25:52 PM
Rank: Elder


Joined: 12/7/2012
Posts: 7,182
Mike Ock wrote:
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


According to this report:

http://www.businessdaily...6908-99eg83z/index.html

Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT.

How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.


2014/2015.... d'oh! d'oh! d'oh!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
newfarer
#351 Posted : Wednesday, July 12, 2017 12:43:32 PM
Rank: Elder


Joined: 3/19/2010
Posts: 2,799
Location: Uganda
Angelica _ann wrote:
Mike Ock wrote:
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


According to this report:

http://www.businessdaily...6908-99eg83z/index.html

Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT.

How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.


2014/2015.... d'oh! d'oh! d'oh!

too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt
punda amecheka
cyruskulei
#352 Posted : Wednesday, July 12, 2017 2:27:55 PM
Rank: New-farer


Joined: 3/9/2010
Posts: 80
Location: kenya
newfarer wrote:
Angelica _ann wrote:
Mike Ock wrote:
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


According to this report:

http://www.businessdaily...6908-99eg83z/index.html

Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT.

How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.


2014/2015.... d'oh! d'oh! d'oh!

too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt



https://www.standardmedi...disclosed-nakumatt-debt
Make money when others are lamenting
murchr
#353 Posted : Wednesday, July 12, 2017 11:17:23 PM
Rank: Elder


Joined: 2/26/2012
Posts: 11,296
Ndemo puts it very well here. Over expansion without the reliance of data. Business intelligence is key in today's economy.

http://www.businessdaily...11992-xx0rts/index.html

Quote:
They have time to turn around but if they delay, some technology company will in the not-too-distant future buy them out and develop a mega platform for distribution.
"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
.
kawi254
#354 Posted : Thursday, July 13, 2017 2:05:20 AM
Rank: New-farer


Joined: 2/20/2015
Posts: 92
Location: Nairobi
newfarer wrote:
Angelica _ann wrote:
Mike Ock wrote:
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


According to this report:

http://www.businessdaily...6908-99eg83z/index.html

Nakumatt was making 850m annual PBT in its heyday but after the crazy expansion they are now making "only" 350m annual PBT.

How is 350m annually supposed to service an 18b debt to suppliers who need their money urgently? This company will become a neglected zombie like Uchumi cause soon all the profits will be servicing the debt.


2014/2015.... d'oh! d'oh! d'oh!

too much effort for too little profits.retail business is stress.51 billion turnover yielding 350million !in pbt


The money is made by Nakumatt owners relaThieves owned suppliers supplying imported products who are paid promptly...remember Ciano and His fresh vegetable supplier side hustle?
Ericsson
#355 Posted : Monday, July 17, 2017 1:56:38 PM
Rank: Elder


Joined: 12/4/2009
Posts: 3,359
Location: NAIROBI
maka
#356 Posted : Wednesday, August 02, 2017 11:18:30 AM
Rank: Elder


Joined: 4/22/2010
Posts: 9,995
Location: Nairobi
deadpoet wrote:
Now it makes sense why there were no eggs at Westgate and Junction on two separate occassions...


http://allafrica.com/stories/201708020052.html

Nairobi — Regional retailer Nakumatt Holdings' workers took to the streets across the country protesting over unpaid salaries.

Workers in the retailers' branches in Nairobi, Kisumu, and Machakos are also alleging mistreatment by their employer.

The workers say that they have been forced to live miserable lives, while others being kicked out of their rented houses for failing to pay rent arrears.
possunt quia posse videntur
Mike Ock
#357 Posted : Friday, August 11, 2017 3:16:27 PM
Rank: Member


Joined: 1/22/2015
Posts: 479
Now Nakumatt Mega is being chased from their building due to rent arrears.

http://www.businessdaily...53310-fsu4ks/index.html

The only move left for these guys is to sell all the remaining stock, pocket the cash, declare bankruptcy and close.
Ericsson
#358 Posted : Friday, August 11, 2017 3:30:09 PM
Rank: Elder


Joined: 12/4/2009
Posts: 3,359
Location: NAIROBI
Mike Ock wrote:
Now Nakumatt Mega is being chased from their building due to rent arrears.

http://www.businessdaily...53310-fsu4ks/index.html

The only move left for these guys is to sell all the remaining stock, pocket the cash, declare bankruptcy and close.


You will see wonders from september
Angelica _ann
#359 Posted : Friday, August 11, 2017 3:35:36 PM
Rank: Elder


Joined: 12/7/2012
Posts: 7,182
Ericsson wrote:
Mike Ock wrote:
Now Nakumatt Mega is being chased from their building due to rent arrears.

http://www.businessdaily...53310-fsu4ks/index.html

The only move left for these guys is to sell all the remaining stock, pocket the cash, declare bankruptcy and close.


You will see wonders from september


What wonders, what do you mean???
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
maka
#360 Posted : Wednesday, August 16, 2017 12:25:17 PM
Rank: Elder


Joined: 4/22/2010
Posts: 9,995
Location: Nairobi
wukan wrote:
Chaka wrote:
Lets say the chain was to be liquidated,how would that go with all that debt?

[quote=Ericsson]The retailer was just opening branch after branch by piling debt. It chose to grow at other people’s expense,” said the official who asked for anonymity.
According to the source, Nakumatt owes suppliers Sh15 billion. Ten commercial banks are also on its neck, seeking to recover Sh8 billion and it has also soaked in an additional debt to the tune of Sh7 billion in commercial paper.

Read more at: https://www.standardmedi...disclosed-nakumatt-debt[/quote]


our insolvency laws are quite adequate to deal with nakumatt's issues. We have the equivalent of chapter 11 called the voluntary arrangement which also allows for moratoria on debt payment. The creditors and shareholders sit together and agree on a restructuring plan to keep the business alive and the creditors get paid over time. But of course all we want is a govt bail outsmile smile


Where can I get info on what rate the commercial paper was issued at?


possunt quia posse videntur
Users browsing this topic
Guest (2)
19 Pages«<16171819>
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.

Copyright © 2017 Wazua.co.ke. All Rights Reserved.