@Meria Mata tupe uhondo.
Nakumatt files for bankruptcy
- Thread starter Electronics4u
- Start date
There's something I have never understood. Why would a healthy company (Tuskys) acquire an ailing company (Nakumatt)?. Si they will inherit the loans and debts/arrears incurred by the dying? What is their advantage? If it is locations/shops, why not just go and open their shop there instead of buying the existing dying shops?
Or a bank collapses with people's money, then it is acquired by another bank. Wont the acquiring bank have to pay the depositors their money, and what is their gain? economists nichanueni.
Or a bank collapses with people's money, then it is acquired by another bank. Wont the acquiring bank have to pay the depositors their money, and what is their gain? economists nichanueni.
SA retailer Shoprite mulls Kenya entry
South African retail giant Shoprite is eyeing the gap left by a faltering Nakumatt, the largest supermarket chain in Kenya, to make its debut in the country.
Gerhard Fritz, who runs Shoprite business outside South Africa, told Bloomberg the retailer was “in talks with some of the property owners” in Kenya “but nothing has been signed” yet.
If successful, this would be the first time Shoprite sets up shop in Kenya.
It would join the likes of Massmart – which operates in Kenya under the brand name Game – and France-based Carrefour, the world's second largest retailer by revenues, who’ve entered the country in recent years.
READ: Foreign retail chains get a foothold in Kenyan market
It would also be a twist in change of fortune for the two African retailers: In 2014, family-owned Nakumatt took over Shoprite stores in Tanzania as it expanded regionally, before it was hit by financial woes.
READ: 19 landlords sue Nakumatt for Sh600m rent arrears
Debt burden
Kenyan supermarket chains have staggered in recent years under the weight of growing debt burdens to their suppliers and gross mismanagement.
Court documents seen by the Business Daily showed that Nakumatt owed its debtors more than Sh31 billion.
Shoprite, which already operates in Tanzania and Uganda and has a strong presence in Central, Southern and West Africa, said it is on course to take over two of Nakumatt’s sites in Uganda.
This will push its presence on the continent to 419 stores in 14 countries in sub-Saharan Africa, excluding South Africa.
http://www.businessdailyafrica.com/...Kenya-entry/4003102-4161774-broevw/index.html
South African retail giant Shoprite is eyeing the gap left by a faltering Nakumatt, the largest supermarket chain in Kenya, to make its debut in the country.
Gerhard Fritz, who runs Shoprite business outside South Africa, told Bloomberg the retailer was “in talks with some of the property owners” in Kenya “but nothing has been signed” yet.
If successful, this would be the first time Shoprite sets up shop in Kenya.
It would join the likes of Massmart – which operates in Kenya under the brand name Game – and France-based Carrefour, the world's second largest retailer by revenues, who’ve entered the country in recent years.
READ: Foreign retail chains get a foothold in Kenyan market
It would also be a twist in change of fortune for the two African retailers: In 2014, family-owned Nakumatt took over Shoprite stores in Tanzania as it expanded regionally, before it was hit by financial woes.
READ: 19 landlords sue Nakumatt for Sh600m rent arrears
Debt burden
Kenyan supermarket chains have staggered in recent years under the weight of growing debt burdens to their suppliers and gross mismanagement.
Court documents seen by the Business Daily showed that Nakumatt owed its debtors more than Sh31 billion.
Shoprite, which already operates in Tanzania and Uganda and has a strong presence in Central, Southern and West Africa, said it is on course to take over two of Nakumatt’s sites in Uganda.
This will push its presence on the continent to 419 stores in 14 countries in sub-Saharan Africa, excluding South Africa.
http://www.businessdailyafrica.com/...Kenya-entry/4003102-4161774-broevw/index.html
Assets,policies and interests are what they want and a business can buy a whole company just to have the call log of the dead company just to further their interests..its an investment with a planned stages of activities but thats how it is normally but in kenya? well concrete jungle ya huku ina ma don wake...na tax yao lazima ulipe
Money isn't about how much you are making. It is also about how much you move. A healthy business is one which moves as much money as it can while staying positive. How? Getting loans and spending that money elsewhere to make a positive profit while still paying back the interest and principal on the loans. Every single business, including banks, work like this. Bank borrows money from depositers and pays them back at an interest. Their core business would be to lend this money elsewhere at a higher rate than what they are paying their depositers. Getting to a large cashflow position takes time, so at times, it is easier to acquire an ailing business with a higher cash flow base.
But tell me, if you acquire nakumatt with its 30bn debts, how do you recover that money? Why start by paying debts even before you make money from the business? Same with banks- inherit depositors money that only exists in the books. You start by paying from your own pockets before even making a cent. How is that good for business?