NAIROBI, Kenya, May 25 – Online retailer Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators of Copia Kenya Limited.
The notice, seen by Capital Business, states that all of the company's affairs, business and assets will be managed by appointed joint administrators.
The company announced that the directors will no longer have any authority over the affairs and business of the company.
The manager acts as the company's agent without incurring any personal liability.
“Parties with claims against the company have until June 23, 2024 to submit their claims in writing to the joint administrators for consideration,” the statement said.
The appointment comes after the retailer announced plans on May 19, 2024 to lay off 1,060 employees due to financial constraints.
The decision comes as the company struggles with ongoing financial difficulties despite efforts to secure additional funding and overcome obstacles it faces.
“Given our ongoing financial difficulties and despite our best efforts to raise additional capital, we have determined that we are compelled to undertake a comprehensive reorganization to ensure the sustainability of our business or consider possible closure,” the company said in a statement.
Copia Kenya has commenced the process by giving affected employees one month notice period as required by labour laws.
The company clarified that the layoffs only apply to individuals whose roles are directly affected by the restructuring.
But the company warned that all staff could be at risk of being laid off if operations halted completely.
The announcement highlights the obstacles facing Kenyan startups as they seek to address financial challenges and ensure the long-term viability of their businesses.
The country's startup ecosystem has been hit by a wave of closures due to rising taxes and operating costs.
