More woes for Nakumatt as Gold Crown Beverages moves to court over debt row

david nganga

July 25, 2017 4:25 PM

Gold Crown Beverages now wants East Africa's largest supermarket chain liquidated as it seeks to recover over $577,479 in debt.

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Nakumatt Supermarket is yet again embroiled in another debt row after another creditor filed an insolvency petition seeking to recover over $577,479 (Kshs 60 million) in debt.

Tea Brewer Gold Crown Beverages now wants Nakumatt liquidated as its repeated demands to the retail chain for settlement of the debt fell on deaf ears, prompting it to serve the retail chain with a statutory demand on June 2, this year.

The Kenyan law states that a firm or individual served with a statutory demand must within 21 days pay all or part of the liability due, or face court action that could end in an order for liquidation.

In the petition, Gold Crown Beverages (Kenya) Ltd says the supermarket has failed to pay the debt in accordance with a joint business plan it signed with Nakumatt to supply goods between March 2016 and February this year.

ALSO READ: Nakumatt blames government for its financial woes

High Court deputy registrar Elizabeth Tanui ordered the petitioner to advertise its petition and return to court on September 18 to determine whether the orders have been complied with.

Gold Crown Manufacturers is the processor of Kericho Gold, Baraka Chai and London Fruit and Herb brands of tea.

The suit comes barely two months after another firm, African Cotton Industries, filed a similar application before the Milimani High Court seeking to wind up the retail chain. The firm says that Nakumatt owes them over $680,000 (Kshs70 million) in debt arrears.

david nganga