CMA extends trading suspension of Deacons shares

The Capital Markets Authority (CMA) has extended the suspension of Deacons Plc shares from the Nairobi Securities Exchange (NSE) to allow the company’s joint administrators to steady the ship after the regulator first suspended the fashion retailer on November 19, 2018.

In a statement to newsrooms, the bourse announced the extended suspension will last for 10 more days from January 18, 2019.

“All shareholders, investors and the general public are asked to take note of the suspension,” read the statement.

Last year, the regulator put the retailer out of its misery by suspending it from NSE for 40 days from November 19.

On November 18, 2018 Deacons appointed Peter Kahi and Atul Shah of PKF Consulting Limited as joint administrators at a time the company was grappling with deep financial problems.

Deacons chief executive Muchiri Wahome said in a statement, “…The primary objective of placing the company in administration will be to enable the administrators to explore the possibility of rescuing the company as a going concern or achieving a better outcome for the creditors than would like be the case if the company were to be liquidated.”

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Mr. Wahome however said that Deacons was not aware of any insolvency proceedings being instituted against the firm which implies there is hope that the fortunes of the fashion retailer may be turned around.