Mulleys Supermarket, the once popular retail chain is on the verge of liquidation - a process that would see the company's assets sold in a bid to recover money owed to its creditors.
On Friday, March 24, the Office of the Official Receiver gazetted Mark Gakuru, the official receiver, as the interim liquidator in the process of Mulleys supermarket's liquidation.
The move to proceed with the liquidation came two months after a liquidation order was issued on December 13, 2022.
“I, the official receiver, give notice that I was appointed as interim liquidator of the said Peter Mulei and Sons Limited (in liquidation), the company, pursuant to the liquidation order issued on December 13, 2022, and in accordance with the provisions of the Insolvency Act, 2015," the receiver announced.
Hashi Energy, which is known for its Hashi gas and petrol stations, also issued a notice stating that it was in the process of appointing one of its shareholders as the liquidator to finalise the process of liquidation.
In the Gazette notice published on Friday, March 24, Hashi Energy Director General Mohamed Adan announced that the company would select its liquidator in an upcoming meeting slated for April 3.
“A list of names of the creditors and proxy forms are available, free of charge, for inspection on March 24, 2023, at the Company's Offices at Delta Riverside Office Park," the Gazette notice read in part.
Other companies lined up for liquidation, according to the Gazette notice, include Ecopole Industries (Kenya) Limited, a company with interests in the energy sector and Sadiki Growers Limited.
Fall of a giant
In 2021, Mulleys supermarket which operated in the counties of Nairobi, Machakos, Kitui and Makueni downscaled its operation after shutting down 10 branches at a go.
The once-retail giant joined the list of big supermarkets that struggled to remain afloat after expanding operations.
The liquidator in charge of the process called upon creditors to lodge their claims and prove their debts to the company.
Liquidation involves converting a company's assets into cash and is considered the last resort in companies struggling to offset bills and loans from lenders.
According to the Business Registration Service, the proceeds realised from the sale of the company's assets are distributed to the creditors claiming debts from the company.
"The assets are then realized by the liquidator and debts are paid out of the proceeds of sale in order of priority. Once the assets are sold and creditors paid, the liquidator closes the company," BRS policies on liquidation state.
