TRM Auctions Nakumatt Assets over 51M shillings Rent Arrears

By Amina Faki,

Nakumatt chain branch located at the Thika Road Mall (TRM) finds itself in hot soup over 51 million shillings unpaid rent, wrote the Business Daily.

Nakumatt assets were seized by TRM through auctioneers. Some of the retailer’s assets that were auctioned are; trolley’s furniture, ovens, electrical appliances, and six trucks.

This move added the retailer to acquire a temporary order that will suspend the auction.

This comes in amid the retailer facing grand problems; the renowned retailer closed down some of its branches in Uganda, and unpaid wages to its workers just to mention a few.

According to documents from the court, it is clear that the creditor had taken drastic measures preceding prolonged negotiations failed.

By June 7, 2017, the retailer owed the mall 51,896,027 shillings wrote the business daily, but the suit papers do not indicate for how long the retailer defaulted paying its rent.

Nakumat said that in the view of the insolvency proceedings with the African Cotton Limited Company, the proclamation notice dated June 8, 2017, violates the provisions of Section 429 and 430 of the Insolvency Act and the same is therefore illegal, null and void.

According to the chain retailer, says that its suit against the mall that the revoking of its assets by TRM is illegal.

The retailer in the light of the first accusation also accused the mall of breaking the law by holding items that are exempt from attachment including customer trolleys and Delite Yoghurt.

Nakumatt chain retail manager said that the retailer undertakes to put TRM into funds once the proposed reorganization and recapitalization of its business is finalized.

The two parties requested for more time from the court until 19 July 2017 to have talks.