nakumatt to merge with tuskys

[RV Pundit]

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"This is a home grown solution. The deal will allow Nakumatt access stock immediately and once it has stock then it can get the cash flows to remain afloat," a source familiar with the deal said.
Read more at: https://www.standardmedia.co.ke/business/article/2001254873/nakumatt-signs-merger-deal-with-tuskys

[hk]

"This is a home grown solution. The deal will allow Nakumatt access stock immediately and once it has stock then it can get the cash flows to remain afloat," a source familiar with the deal said.
Read more at: https://www.standardmedia.co.ke/business/article/2001254873/nakumatt-signs-merger-deal-with-tuskys

From what I gather from friends and acquaintances, even tuskys is having problems paying on time. So I don't think this is a solution especially to suppliers. 

[RV Pundit]

Yeap a strategic partner that will inject new capital is the only way out.

From what I gather from friends and acquaintances, even tuskys is having problems paying on time. So I don't think this is a solution especially to suppliers. 

[Globalcitizen12]

The house of cards called Kenyan economy is about to unravel. You will see dust. Uhuru has gone on spending binge funded by high taxes and debt. The screwball will leave a trail of destruction

[RV Pundit]

Mmh. I don't think so. Kenya economy is ever more resilent.

The house of cards called Kenyan economy is about to unravel. You will see dust. Uhuru has gone on spending binge funded by high taxes and debt. The screwball will leave a trail of destruction

[Kadudu]

How will Nakumatt pay Tuskys if Nakumatt cannot pay its suppliers at the moment?

[bryan275]

Amazing that a business that sells everything for cash finds itself in cash flow problems.  Points to serious structural issues that need more than a merger.

[Globalcitizen12]

Mmh. I don't think so. Kenya economy is ever more resilent.

The house of cards called Kenyan economy is about to unravel. You will see dust. Uhuru has gone on spending binge funded by high taxes and debt. The screwball will leave a trail of destruction

That what Greece thought ..it is all about the simple things like the ability of a family to meet basic needs. Most enterprises in Kenya are going on 9th year of cash flow problems and panic. Oil is still at 40 meaning the turknana oil won't help. Tea prices from 2016 to fy 2017 are stagnant. This year there will less of produced..smes are having issues raising capital ..if tuskys and nakumatt go down they will go down with billions owed to suppliers and banks

[RVtitem]

The easiest way out for most of these kleptocorporates would be to convert the debt into shares and sell to gullible mwananchi.

How is Uchumi doing on the other side of the retail crisis? I also read it is in advanced stages negotiation with a liquidity injecting firm.

[vooke]

Details of this 'merger' are hazy. Tusksys must be high on weed to do this.

[Nefertiti]

Retail is doing well. Ironically traditional retailers like Nakumatt should thrive as retail formalizes and kiosks die off. The more we have mobile & plastic the more folks will move mainstream. I think Nakumatt troubles are an indicator of inefficiency. How do you explain newcomers like Carrefour & online Jumia?

I can see VC-backed startup Jumia here .. doing well at 5 years. https://www.techcityng.com/rocket-internets-q1-2017-report-reveals-jumias-performance-status/

If Carrefour sells out to Amazon the local slow adapters will have to shape up or ship out. http://fortune.com/2017/10/03/amazon-grocery-stores-france/

[Omollo]

How did you even arrive at this point? You have been denying that Nakumatt is a dead shell!

Next time learn your lessons. One: When a supermarket is kicked out of its premises the landlord knows it is broke and won't sue or take any action. Landlords cannot come within 100 KMs of a solvent supermarket because those who have tried have paid dearly! It makes it worse when the agency kicking them out is a reputable experienced property management firm.

2. Supermarkets and other big business do not pay rent monthly like you. They pay a lump sum for an extended period. Usually in advance but can also pay in arrears for equally long periods.
 

"This is a home grown solution. The deal will allow Nakumatt access stock immediately and once it has stock then it can get the cash flows to remain afloat," a source familiar with the deal said.
Read more at: https://www.standardmedia.co.ke/business/article/2001254873/nakumatt-signs-merger-deal-with-tuskys

From what I gather from friends and acquaintances, even tuskys is having problems paying on time. So I don't think this is a solution especially to suppliers. 

[Mr Mansfield.]

What about the 35 Billion Nakumatt owes its suppliers and creditors?

Will Tuskys maintain Nakumatt employee thieves who brought it down?

Kenya is a true bandit economy,

Without Prejudice.

[gout]

Looking at the history of the retail sector shows there is something managers overlook. From the story of fabled Jack n Jill, Uchumi and now Nakumatt.

Which finance management does one apply to inject 'capital' into an elephant which owes over 18 billion to suppliers only. Nakumatt is dead. The courts should grant Brookside's wish to have it wound up. 

[Omollo]

Nakumatt was no0t in the Supermarket business. Nakumatt was a money laundering outfit under Moi, continued under Kibaki and now dumped. The drug dealers and smugglers have found easier and better methods such as Mpesa.

They also have their own banks after Moi left and anybody could start a bank under Kibaki as it was in the 80s and early 90s. New rules and regulations allowed many other outfits to function as "banks" even without taking in ordinary account holders.

[patel]

Nakumatt is dead and out, once your business cannot even puppy and his mother your business is burnt beyond recognition. .

[GeeMail]

Tuskys will be committing suicide to take Nakumatt. When swimming in shark infested waters the last thing you need is a wounded lion on your back. The lion cab recover temporariky and naul you, or his bleeding wounds will attract the hungry sharks.

[hk]

How did you even arrive at this point? You have been denying that Nakumatt is a dead shell!

Next time learn your lessons. One: When a supermarket is kicked out of its premises the landlord knows it is broke and won't sue or take any action. Landlords cannot come within 100 KMs of a solvent supermarket because those who have tried have paid dearly! It makes it worse when the agency kicking them out is a reputable experienced property management firm.

2. Supermarkets and other big business do not pay rent monthly like you. They pay a lump sum for an extended period. Usually in advance but can also pay in arrears for equally long periods.
 

"This is a home grown solution. The deal will allow Nakumatt access stock immediately and once it has stock then it can get the cash flows to remain afloat," a source familiar with the deal said.
Read more at: https://www.standardmedia.co.ke/business/article/2001254873/nakumatt-signs-merger-deal-with-tuskys

From what I gather from friends and acquaintances, even tuskys is having problems paying on time. So I don't think this is a solution especially to suppliers. 

I believe nakumatt could have survived if they had downsized. Close down non performing branches and concentrate on the cash cow branches like Mega(uhuru highway), Junction, TRM and maybe village market. Nakumatt struggles are a boom for carrefour and maybe Foodplus, and which hopefully translates to revenue growth for their suppliers like me.

[vooke]

Tuskys saving Nakumatt while her sister Naivas is on drip?

Kenya's 3rd largest retail chain, Naivas Supermarkets shuts down two branches
√ Ronald Ngala branch in Nairobi
√ Githunguri branch in Kiambu pic.twitter.com/u5dClHaTQ7

— Kenyan Wall Street (@kenyanwalstreet) October 19, 2017

[vooke]

What weed is Tuskys smoking to countenance this merger?

19 landlords sue Nakumatt for Sh600m rent arrears https://t.co/PjValW4w0p pic.twitter.com/4fMCmMiIkz

— BusinessDaily (@BD_Africa) October 30, 2017