It’s been a never-ending struggle for this Kenya-based menswear retailer! And now it’s reached the extent of shutting down forever.
Failing to raise funds to make a turnaround, Deacons East Africa Plc’s administrators may now be left with no option other than liquidating the apparel retailer.
All the efforts of the administrators, over recent times, to sell the assets and seek buyers have fallen through.
Peter Kahi, PKF Kenya, corroborated further by saying that a report will be filed with Nairobi High Court soon. This comes after the retailer failed to raise US $ 4.15 million to help in its turnaround strategy.
PKF Kenya, one of the administrators of the retailer, added that every creditor is going to take a hit.
Deacons had fallen into administration back in November 2018 following the loss of its biggest franchise, Mr Price Group Limited, a South African retailer. And it has got worse since then!
Peter also said that the retailer’s only assets are fittings at 3 stores that it previously used to run. None of these was bought as there weren’t any takers.
With rents piling up at a faster pace, landlords are now desperate to get their premises back.
Reportedly, Deacon’s liabilities stood at 1.12 billion shillings at the time of going into administration. And now it’s on the brink of liquidation!
The Kenya-based retailer offers T-shirts, bottoms, shorts, dresses and footwear for men, women and children and has its offices in Uganda, Rwanda and Tanzania too.
About Deacons (East Africa)
Deacons (East Africa) Plc sells a diverse range of clothing, footwear and accessories for men, ladies, children and babies through retail outlets in Kenya, Uganda, Rwanda and Tanzania. The company also sells a range of gym and sports apparel and household products.
The latter includes dining and crockery ware and kitchenware. Deacons (East Africa) Plc markets well-known fashion brands which includes 4u2, Angelo, Mr Price, Truworths, Babyshop and Bossini. Sports and fitness brands include Adidas, Reebok and LifeFitness. Its household and kitchenware products are marketed under Mr Price Home.