Biscuit company Britania Foods has been put under administration in a bid to create a strategy to recover suppliers’ and creditors’ money.
In a public notice, Britania announced the withdrawal of the powers of its directors, and consequently appointed Peter Kahi of PKF Consulting to take charge of the firm.
“With the appointment, the powers of the administrator extend to all assets and undertaking of the company,” the notice read in part.
Additionally, all creditors of the company have been asked to place their claims before September 3.
The takeover by the administrators comes barely a month after a supplier, Uzuri Foods, which delivered Britania Foods with flour between March and August 2019 moved to court seeking to liquidate the biscuit maker over unpaid bills.
Uzuri Foods suggested that the High Court appoint Kolluri Venkata Subbaraya as the liquidator and give him the authority to sell assets as a debt recovery strategy. The firm had sent a statutory demand to Britania on July 8th last year following back and forth between the two companies over the debt.
Under Kenyan law, a creditor is allowed to issue a 21-day statutory notice to a company or individual that is unable to pay its debts for any reason.
The document serves as an ultimatum to repay the debt claimed or agree to a payment plan with the creditor.
The recent collapse of Nakumatt and Tuskys Supermarkets dented Britania’s financial muscle, with losses of about Ksh. 50 million being incurred over unpaid supplies.
Britania currently owes Uzuri Foods a total of Ksh. 17.3 million with the principal debt owed at Ksh. 14 million, while Ksh. 3.3 million in interest has accumulated over two years.
Britania has been in operation for 34 years, growing steadily into Kenya’s biggest local brands.
Kenyan-owned private equity firm Catalyst Principal Partners acquired Britania in 2016.