Deacons suspended from NSE for 40 days

The bourse has suspended trading of shares of Deacons (East Africa) Plc following the financial constraints that have led to the fashion retailer being placed under administration.

A public notice from the Nairobi Securities Exchange said the suspension takes effect from November 19 and will run for 40 days.

The suspension by the bourse is so as to allow the joint administrators appointed to the Deacons Board to run its business according to the Insolvency Act.

On November 18, Deacons appointed Peter Kahi and Atul Shah of PKF Consulting Limited as joint administrators as a result of the financial difficulties being faced by the company.

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.”

Mr. Wahome however said that Deacons was not aware of any insolvency proceedings being instituted against the firm within the past 12 months, meaning there is hope that the current financial woes of the fashion retailer may be turned around.

READ : KENYA’S WOES ON WORLD TOILET DAY

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The fashion retailer which was listed at the NSE in 2016, primarily targets high end urban shoppers and therefore places its stores at prime shopping malls where rent prices are high. This in turn leads to high pricing of items.

Earlier this year, Deacons lost its partnership with Mr. Price in a Ksh133 million payoff.

In recent months, the NSE has also suspended the trading of shares for the ailing ARM Cement.

SEE ALSO : TANZANIA LOSES SH1 BILLION AID AFTER CRACKDOWN ON HOMOSEXUALS

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Mike Njoroge
Mike Njorogehttp://www.businesstoday.co.ke
Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]

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