Nakumatt woes pile up as lawyers withdraw from case

The lawyers representing Nakumatt have withdrawn their services, saying the retailer has been ignoring them, making it difficult to fight its cases in court.

The supermarket chain, which has lost a petition to appoint a receiver manager, has now parted ways with Iseme Kamau and Maema Advocates, who withdrew from the cases yesterday.

“Material differences on how to handle matters relating to the company have arisen between the firm and the company,” Diana Ogula, representing the law firm, said in an affidavit.

Iseme Kamau and Maema Advocates have been defending Nakumatt against a dissolution case filed by Africa Cotton and Gold Crown Beverages over unpaid debts.

Debt burden

The struggling retail chain saw its debt burden rise to an estimated Sh40 billion as it was also forced into mass branch closures in prime locations.

It had resorted to a last-minute effort to appoint PKF Consulting’s Peter Kahi as administrator, which would have allowed it to enjoy a moratorium on enforcement against its assets or evictions by landlords.

After it lost the petition, the retailer’s local and foreign rivals have been helping themselves to its former branches as landlords force the supermarket to vacate premises for late or non-payment of rent.

Naivas Supermarket has taken up the Bamburi branch after the High Court declined to allow Nakumatt to appoint a receiver manager.