People in Nakumatt‘s supply chain can now breath a sigh of relief as the Retailer promises to make their paymment in 14 days.
The new management of Nakumatt Holdings has expressed optimism that the retailer is on a path to recovery.
While addressing a meeting convened to update Nakumatt’s suppliers on the ongoing developments, the Nakumatt Administrator Peter Kahi confirmed that ongoing plans to maintain the business through a supplier partnership model are now on course.
Kahi has asked suppliers and shoppers to continue providing their support as efforts to formulate a rescue plan gets underway.
“In the short term, what we are doing is a consignment sales stock basis which basically means that if we don’t sell your products, you can pick your stock. If we sell, we pay you within 7 or 14 days depending on how the products are moving,” said Kahi.
He says plans to restock up to 20 Nakumatt branches by next month had been drawn up.
Such restocking, he noted, will provide an avenue to grow customer traffic in the branches and much-needed revenue.
“The chance of recovery for Nakumatt is fair and can be accelerated by the support of specific stakeholders such as suppliers to fuel its engine,” Kahi said, adding that, “the new legal frameworks provide a good platform for the administrator to work for the benefit of all creditors.”
At the same meeting, Kenya Association of Manufacturers (KAM) Chairperson, Florah Mutahi stressed the need to beef up governance frameworks for the retail sector.
The manufacturing sector, she confirmed would continue to extend its support to the retailers who provide a complementary market for manufactured goods.
“However, it is important for retailers to adopt contemporary governance principles that can help avert the current challenges facing the local market,” She stressed.
As part of the recovery plans, the Nakumatt Administrator recently announced the appointment of Tusker Mattresses Limited as the new Managers for the regional retailer.
The appointment, subject to regulatory approvals earlier sought, will see Tusker Mattresses Ltd assume the operations management aspects for Nakumatt as the firm’s recovery efforts gain steam.
With the appointment, Tusker Mattresses will provide strategic management support and related retail operations back up to the Administrator under stringent performance terms and conditions.
“The success of the administration process, and ultimately turnaround of Nakumatt business, will be hinged on, among others, strategic retail stores management which we believe will be achieved through the appointment of Tusker Mattresses as an operating Manager,” Kahi said.
As an operating manager, Tusker Mattresses will provide specific technical services geared at avoiding further erosion on Nakumatt’s operating units.